SP0604-24-0420 FE Warren RFI.docx
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- FE Warren Market Participant RFI
- Solicitation number
- SP0604-24-0420
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Defense Logistics Agency Energy
About this file
This document is a Request for Information (RFI) issued by the Defense Logistics Agency (DLA) Energy, on behalf of FE Warren Air Force Base (FE Warren), to gather information and gauge market interest for procuring Market Participant Services for FE Warren's electricity load in the Southwest Power Pool's Regional Transmission Organization's Western (SPP-RTO West) expansion, effective April 1, 2026.
The RFI seeks feedback on the government's proposed contract structure, including the Contract Line Item Number (CLIN) structure, pricing terms, delivery period, and Statement of Work. Key requirements include the contractor serving as the Market Participant and Meter Agent, providing electric supply services, ensuring Resource Adequacy compliance, and handling SPP transmission service and market settlements. The RFI also requests information on the respondent's ability to meet government contracting requirements, such as System for Award Management (SAM) registration. Responses to this RFI are due by July 1, 2024 and will be used to inform a future solicitation, though the government is under no obligation to issue a contract.
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DLA Energy - Request for Information Market Participant Services for FE Warren Air Force Base Page 1
FE Warren Air Force Base Market Participant Services Request for Information
Introduction
1.1. This Request for Information (RFI) is for market research purposes. The Defense Logistics Agency Energy (DLA Energy), on behalf of FE Warren Air Force Base (AFB), is seeking information and interest concerning how best to procure Market Participant Services in the Southwest Power Pool’s Regional Transmission Organization’s Western (SPP-RTO West) expansion. FE Warren intends to select a Market Participant Contractor (Contractor) responsible for FE Warren’s load in SPP-RTO West effective April 1, 2026.
1.2. In accordance with Federal Acquisition Regulation (FAR) 15.201(e), responses to this RFI are not offers and cannot be accepted by the Government to form a binding contract. This RFI is issued solely for information and planning purposes and does not constitute a solicitation for proposals. Responses to this notice shall be treated as information only.
1.3. All responses received may be held for an extended period of time or destroyed. In no case will any response be returned to the originator. DLA Energy will not provide reimbursement for costs incurred in responding to this RFI, as all costs associated with responding to this RFI will be the sole responsibility of the responding party. Respondents are advised that DLA Energy is under no obligation to acknowledge receipt of the information received or provide feedback to respondents with respect to any information submitted under this RFI. Responses to this RFI do not bind the Government to any further actions related to this topic.
1.4. This is not a Request for Proposal (RFP) or an Invitation for Bid (IFB), nor is it to be construed as a commitment by the government. Further, the government reserves the right to pursue any concepts that may result from this action without restriction.
Description F.E. Warren AFB is a federal enclave located northwest of Cheyenne, Wyoming. FE Warren is not a retail customer of a local utility and electric service to FE Warren is not subject to regulatory authority of the Wyoming Public Service Commission. FE Warren’s point of delivery is Warren substation which is interconnected to the Western Area Power Administration’s Loveland Area Project (WAPA-LAP) transmission system via 115 kV lines from the Happy Jack substation. WAPA-LAP is part of the Western Area Colorado Missouri (WACM) Balancing Authority Area (BAA) which will be joining the Southwest Power Pool (SPP) as a Participating Transmission Owner (PTO) effective April 1, 2026. FE Warren AFB will be an Embedded Entity[footnoteRef:1] within the SPP’s western Regional Transmission Organization (RTO). The Department of the Air Force seeks to contract for Market Participant services to facilitate FE Warren’s participation in the SPP RTO and to provide all services required to meet FE Warren’s full electric requirements in the Integrated Marketplace. [1: An Embedded Entity is an entity that is part of the current Western Area Colorado Missouri (WACM) or Western Area Upper West (WAUW) Balancing Area that will be coming into the SPP RTO with WAPA’s integration into SPP.]
Requirements It is the intent of the Government to enter into a contract with a single entity to perform all efforts required to register, serve and settle FE Warren’s loads with SPP. The contractor will meet all SPP requirements so that FE Warren’s load will be included in the SPP-RTO West effective April 1, 2026. The Proposed Statement of Work is presented in section 4, below. In order to assist in determining the optimal procurement strategy, DLA Energy requests feedback on the following:
· Interest and Intent to Offer
· Please communicate your interest and intent to prepare an offer in response to a future RFP.
· Please identify any elements of the solicitation that would prohibit a response to a future RFP.
· Government Contracting Requirements
· Registration with System for Award Management (SAM)[footnoteRef:2] [2: Registration detail is available at https://sam.gov/content/home ]
· All federal government contractors must have a current registration within SAM.
· Please indicate whether or not your company has a current SAM registration and whether this will be an impediment to making an offer.
· Contract Line Item Number (CLIN) structure
· The federal government structures contracts based on Contract Line Item Charges for purposes of funding a contract.
· Section 4, below, presents one potential breakout of CLINs.
· Each CLIN will require a specified funding level at the time of the contract, although CLIN 003 would be invoiced based on actual and not estimated charges.
· Please consider the proposed CLIN structure and recommend any adjustments that would allow for you to respond to a future solicitation efficiently and economically.
· The Federal Antideficiency Act prohibits federal agencies from obligating or expending funds in advance of or in excess of an appropriation. Any contract with the federal government will include a clause indicating that funds are available subject to appropriation by the United States Congress. Please identify any specific risks related to Antideficiency requirements and suggested language or pricing that would mitigate such risks.
· Recommended delivery period
· The federal government is limited to a term of 5 years for a supply contract, or 10 years for a utility service contract. With a maximum of 10 years, please recommend the preferred term for the agreement.
· Please describe any price trade-offs and benefits associated with different term lengths.
· Please describe any structural trade-offs or possible constraints associated with different term lengths.
· Pricing structure
· Section 4 presents a mix of fixed and variable (pass-through) priced components.
· Please comment on the Government’s proposed pricing structure and identify trade-offs associated with alternative pricing constructs.
· Are any other pricing structures available or recommended?
· Statement of Work
· Listed below are the primary tasks associated with meeting the full electric requirements of FE Warren AFB in SPP. Please review the Proposed Statement of Work and provide the following comments and insights:
· Identify those tasks requiring additional details to assist with pricing.
· Identify critical functions not currently listed in the Statement of Work.
· Identify other efforts which would benefit the Air Force in its objective to procure low cost, reliable and clean electricity for FE Warren AFB.
· Provide any additional comments or questions that would enhance your ability to prepare a response to the RFP.
· Identify data that are required to prepare a response.
Proposed Statement of Work The Contractor shall perform the following functions as needed to meet FE Warren’s full electric requirements on a load following basis. Anticipated work to be performed include the following:
Market Participant Interested offerors must be a current registered Market Participant in SPP with an executed Market Participant Agreement accepted by SPP. The Market Participant must comply with the provisions of the SPP Open Access Transmission Tariff (OATT), SPP Business Practices, and SPP Market Principles for furnishing full requirements electricity supply to FE Warren. The Contractor will be an asset-owning Market Participant representing FE Warren’s load in the Integrated Marketplace, including financial responsibility to SPP for load and/or generation.
Meter Agent The contractor must either have a current meter agent agreement with SPP, or have a relationship with at least one meter agent operating in SPP. The Meter Agent will fulfill all responsibilities required for supply to FE Warren AFB, including responsibility for the acquisition of end-use meter data, aggregation of meter data, transfer of meter data, and application of meter data to settlement intervals on behalf of FE Warren.
Electric Supply Services
| 4.3.a | WAPA Hydropower: FE Warren is entitled to an allocation of hydropower from the Bureau of Reclamation’s Loveland Area Projects which is marketed by the Western Area Power Administration Rocky Mountain Region (WAPA-RMR) office. An Interagency Agreement between FE Warren AFB and WAPA-RMR sets forth the terms and conditions for delivery of the WAPA-LAP hydropower. As per the terms of the Interagency Agreement, the Air Force will pay WAPA-RMR directly for firm electricity supply, inclusive of transmission. The Contractor will be responsible for scheduling the WAPA-LAP hydropower via WAPA-RMR scheduling portal, consistent with the terms of the Interagency Agreement which will be shared with the Contractor upon award of the Contract. The firm allocation of WAPA-LAP provided for under the current Interagency Agreement is provided in Exhibit B to the RFI. |
| 4.3.b | Behind the Meter Generation: There are 3 wind turbines located behind the meter at FE Warren AFB: two 660 kW Vestas and a single 2,000 kW Gamesa. The Gamesa turbine was taken out of service in 2015 and is not presently scheduled to return to service. The Contractor is not responsible for the operation of the behind the meter turbines. Impacts of the turbines for the Market Participant Contractor will be limited to that of impacts to forecasts and scheduling, and any relevant SPP charges (regulation, energy imbalance) would be treated as direct pass through charges. |
| 4.3.c | Term, Day-Ahead and Real-Time Power Purchases: The Contractor will be responsible for making any and all term, day-ahead and real-time energy purchases required to meet the full requirements of FE Warren AFB after consideration of WAPA-LAP hydropower and behind-the-meter wind. |
| 4.3.d | Supply Plan: The Contractor will prepare a procurement and supply plan annually for a power year that will be consistent with the federal fiscal year, October 1 – September 30. The supply plan is due to FE Warren AFB by the end of June each year. The Supply Plan will include the quantity of power to be purchased under term contracts, the quantity left to open positions, and the projected cost for full requirements electric service, inclusive of Resource Adequacy requirements and SPP transmission and integrated market charges at the time of the supply plan. The Contractor should include, at the direction of the government, options to procure carbon free electric resources. The Contractor should also note any significant changes to SPP Transmission or Integrated Marketplace services that would impact services and costs to FE Warren. |
Resource Adequacy Compliance The Contractor will act as the Load Responsible Entity (LRE) for FE Warren load in SPP. WAPA will report the FE Warren load in the Contractor’s Resource Adequacy Workbook (RAW) for SPP Resource Adequacy reporting. The Contractor is responsible for procuring capacity and transmission resources sufficient to meet SPP Resource Adequacy requirements.
SPP Transmission Service The Contractor shall execute all necessary agreements required to provide Network Transmission Service to FE Warren AFB. Transmission service associated with delivery of WAPA-LAP hydropower and associated capacity will be treated separately, pending final resolution of the WAPA-SPP tariff documents and approval of grandfathered transmission arrangements.
Scheduling Coordinator Services The Contractor will provide Scheduling Coordinator (SC) services for scheduling resources to meet FE Warren’s projected loads. The Contractor will coordinate with WAPA for scheduling federal hydropower consistent with the protocols, including minimum and maximum hourly schedule limitations and seasonal and monthly firm energy quantities. The Contractor shall seek to reduce costs by optimizing scheduling of market purchases and WAPA-LAP hydropower.
SPP Market Settlements The Contractor shall perform estimated settlements each day and compare those settlements to weekly SPP invoices. Settlement charges will be invoiced on a pass-through basis and the Contractor will develop corresponding monthly settlement invoices for applicable Air Force charges and credits. The Contractor will enclose backup settlement invoices with a monthly invoice to Air Force. The Contractor shall submit and reconcile any disputed Air Force charges to SPP in accordance with the SPP Tariff.
Market Participant Services Accounting and Invoicing Firm Fixed Price Services
| 5.1.a | Procurement, Scheduling, Settlements and Billing (CLIN 001): The Contractor will invoice FE Warren AFB a monthly fixed fee for all labor and efforts related to the procurement of energy and capacity resources, all scheduling coordinator services, and all costs related to settlements and preparation of monthly invoices. |
| 5.1.b | Energy Supply Plan (CLIN 002): The Contractor shall invoice FE Warren a fixed flat fee associated with preparation of an annual energy supply plan. The fee would be invoiced upon completion and approval of each plan. |
Pass Through Charges (CLIN 003)
| 5.2.a | Electric Supply Resources: The Contractor will invoice FE Warren AFB direct costs associated with procurement of electricity supply resources. Term purchases will be invoiced consistent with the pricing terms of the Contractor and the supplier/generator resource without mark-up. Day-Ahead and Real-Time energy resources will be invoiced in conjunction with the SPP Settlements Process, identified with the applicable SPP settlement code as a line item on the invoice. Invoices should include both billing units in kWh and contract and/or average market rates presented in $/kWh. |
| 5.2.b | Resource Adequacy Resources: The Contractor shall invoice FE Warren actual costs for procuring capacity and associated transmission as needed to meet Resource Adequacy requirements. The Contractor should include relevant billing units and charges on a monthly, pro-rated basis as applicable. |
| 5.2.c | SPP Transmission Services: The Contractor shall include the actual costs for transmission service consistent with the rates and terms of service of the SPP OATT. The Contractor should include relevant billing units and charges on a monthly, pro-rated basis. |
| 5.2.d | SPP Market Settlements: The Contractor shall aggregate SPP Settlement charges, excluding Day Ahead and Real Time energy charges which are invoiced according to paragraph 4.2.a, and present the aggregated charges on the monthly invoice as a lump sum. A more detailed settlement report should be included as backup to the monthly invoice with totals matching the amount presented on the bill. |
Disclosure on Regulated Services Certain eligible Market Participants fall into a category characterized as regulated utility entities, including investor-owned utilities, privately held utilities, and member-owned electric cooperatives whose rates and terms of service are subject to review and approval by either federal or state regulators, or a Board of Directors. This solicitation does not intend to prohibit or advantage an offer by an entity characterized as a regulated entity. Should the offeror include services that are subject to the review and approval of a regulator or Board of Directors, please indicate the relationship of the services contemplated and the current tariff offerings available. Also, describe any review and approval that would be necessary to meet the requirements of this contract, and designate the responsible regulatory body. This section excludes consideration of any regulated services provided by SPP.
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