Final Pre-Proposal Conference Brief.pdf

Department of the Air Force

Eielson AFB Microreactor Pilot Pre-Proposal Conference

12 October 2022

Welcome & Kickoff

Ms. Ashley Sadorra, CTR Office of Deputy Assistant Secretary of the Air Force for Environment, Safety and Infrastructure (SAF/IEE Energy)

Agenda 0900-0930 Registration Opens

Attendees process through base security and travel to Eielson AFB (Yukon Club)

0930-0935 Welcome & Kickoff, Administration Ms. Judith Willis, Office of Deputy Assistant Secretary of the Air Force for Environment, Safety and Infrastructure (SAF/IEE Energy) (5 mins)

0935-1005 Eielson AFB Microreactor Pilot Overview Ms. Nancy Balkus, Deputy Assistant Secretary of the Air Force for Environment, Safety and Infrastructure (SAF/IEE) - Opening Remarks (5 mins)

Col Tony Alvarado, 354 MSG/CC - Mission Brief (15 mins)

Lt Col Christopher Higgins & Ms. Alexa Greene, 354 CES - Siting & Environmental Brief (10 mins)

1005-1115 RFP Scope of Work & Land Lease Focused Presentation Ms. Charlene Woods, DLA Energy - RFP Scope (45 mins)

Mr. Tom Brown, Air Force Civil Engineer Center, Installations Directorate (AFCEC/CID) - Real Estate Brief (10 mins)

Mr. David Mairs, Air Force Civil Engineer Center, Installations Directorate (AFCEC/CIU) - Lease Brief (10 mins)

Agenda 1115-1230 General Questions from the Audience & Networking Opportunity

Questions to be Recorded Ms. Charlene Woods, DLA Energy

1230-1400 Lunch Break

1400-1600 Coal Plant Overview & Site Visit Bus Tour of available land lease sites, power control center (operations room), & coal plant Guide: Lt Col Christopher Higgins, 354 CES/CC

1600-1615 Break (Yukon Club)

1615-1655 Open Forum for Questions Questions to be Recorded Ms. Charlene Woods, DLA Energy; Ms. Judith Willis, SAF/IEE Energy; Mr. David Mairs, AFCEC/CIU;

Ms. Leslie Brown, SAF/GCN; & Lt Col Christopher Higgins, 354 CES/CC

1655-1700 Closing Remarks & Conference Conclusion Ms. Nancy Balkus, SAF/IEE

Speaker Introductions:

Ms. Nancy Balkus

Deputy Assistant Secretary of the Air Force for Environment, Safety and Infrastructure (SAF/IEE)

Speaker Introductions:

Col Tony Alvarado

354 MSG/CC

Speaker Introductions:

Lt Col Christopher Higgins & Ms. Alexa

Greene

354 CES

Speaker Introductions:

Ms. Charlene Woods

DLA Energy

Speaker Introductions:

Mr. Tom Brown

Air Force Civil Engineer Center, Installations Directorate (AFCEC/CID)

Speaker Introductions:

Mr. David Mairs

Air Force Civil Engineer Center, Installations Directorate (AFCEC/CIU)

Eielson AFB Microreactor Pilot Overview

Opening Remarks

Ms. Nancy Balkus Deputy Assistant Secretary of the Air

Force for Environment, Safety and Infrastructure

•P r e p a r e - D e p l o y - E n a b l e•UNCLASSIFIED//FOU O

354 FW Mission Brief Valor in Combat

Why Are We Here?

Brig Gen Billy Mitchell, 1935

2022 National Defense Strategy

“The Department will act urgently to sustain and strengthen deterrence, with the People’s Republic of China (PRC) as our most consequential strategic competitor and the pacing challenge for the Department”

DEFENSE OBJECTIVES

- Defending the homeland

- Deterring strategic attacks

- Deterring aggression, prioritizing the PRC challenge in the Indo-Pacific

- Building a resilient Joint Force and defense ecosystem

2020 USAF Arctic Strategy

“Russia is an Arctic nation…China is not an Arctic nation.

“As strategic as the Arctic is to power projection, it is equally critical to deterrence and U.S. defense.”

14,500’ Runway

Ramp Space for 160+ Fighter Aircraft 40+ Heavy Aircraft

Or Bombers

~ 200 Billeting & Temp Dorm Rooms

48M Gallon JP-8 Storage Capacity

Joint Mobility Center

Enhance. A Closer Look at our Infrastructure

Central Heating & Power Plant

Family Members: 2,700 Civilians / Contractors: 500 Alaska Air National Guard: 775

Active Duty: 3,151 Family Members: 6,479 Civilians & Contractors 3,426 Tenant Units 77 Retirees 2,391 Yearly Economic impact: $1.2B

Who We Are – Our Team and Demographics

CAO 25 May 2022

Our Partners on Eielson

168th Wing

Det 460 Air Force Technical Applications Center

(AFTAC)

66th Training Squadron

210th Rescue Squadron

354th Fighter Wing Mission

Mission

• The 354th FW provides USINDOPACOM combat-ready fifth-generation airpower, advanced airpower integration training, and strategic arctic airpower basing.

Vision

• The world’s premier fighter wing—ready to compete, deter, and win the high-end fight with a diverse, ready, innovative, and lethal force!

Deploy, Train, Project

354th Fighter Wing LOEs

Deploy

Deploy Lethal Fifth Generation Combat Airpower

Train

Train Advanced Airpower Operations

Project Project Strategic Airpower

Deploy, Train, Project

Deliver F-35 Combat Capability

Eielson Aircraft: 2020 to 2022

Train and Integrate Advanced Operations

JPARC Interior= 101,705,728 acres (120,000 sqNM)

NTTR = 12,000 sqNM

Valiant Shield

Train and Integrate Advanced Operations

Cope North Red Flag Alaska

Project Strategic Airpower

Heritage of Eielson & Pioneers Before Us

Valor in Combat!

•I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Siting & Environmental Mrs. Alexa Greene, 354 CES

12 October 2022

Overall Potential Site Area

Site Conditions

Wetlands:

Much of the open area behind the cooling pond and tank farms are wetlands and/or within the

100-yr floodplain.

Contamination:

PFAS plume exists from the outer edge of the tank farm to the west/northwest in groundwater.

Recently, EPA just issued updated draft LHA values for PFOA and PFOS, which lowers it down to a nearly non-detect level.

If siting is selected down in the main industrial areas, work plans and saps will be required as there are multiple overlying contaminated sites in most of the green regions. Consider innovative construction and building up versus out in this area.

Green regions to the east end of the flightline are less likely to be impacted by contamination in groundwater and soil. If the site is selected in this region, we will need to verify that the plume hasn't changed for PFAS in this direction.

Part of the green region going north towards Quarry hill may be viable as there is limited contamination in this zone (most of it is near the explosive quantity distance arc).

Other:

The area around the schools and the power plant frequently have intense fogging in the winter due to the moisture in the emissions from the power plant

RFP Scope of Work & Land Lease Focused Presentation

WARFIGHTER ALWAYS

The Nation’s Combat Logistics Support Agency E s t a b l i s h e d 1 9 6 1

•DEFENSE LOGISTICS AGENCY

•DLA

DLA Energy Installation Energy Eielson AFB Pre-

Proposal Conference Small Micro-Reactor

(SMR)

Charlene Woods

Contract Specialist October 12, 2022

WARFIGHTER ALWAYSWARFIGHTER ALWAYS 35Source: N/A As of Civilian Date: September 27, 2022

Agenda

• Who we are and our mission

• DLA Energy Installation Energy contract programs

• SMR General requirements

• Request for Proposal overview

• Milestones

• Points of Contact

WARFIGHTER ALWAYSWARFIGHTER ALWAYS

DLA Energy Overview

• Mission: To enable mission readiness by providing globally resilient energy solutions to the Warfighter and Whole of Government

• Vision: The trusted leader in innovative energy solutions aligned with the speed of change.

36Source: N/A

Installation Energy

• Actively administering over $5.0 billion in natural gas, electricity, coal, large scale renewable energy and Energy Savings Performance Contracts for over 200 customers (DoD and Federal Civilian)

• Major focus areas include:

– Execution of resilient energy and energy conservation requirements utilizing power purchase agreements, ESPCs and UESCs

– Execution of agreements for implementation of electricity demand response at federal facilities

– Transitioning portfolio to carbon pollution-free electricity (CFE)

37Source: N/A

SMR General Requirements

• Fixed-site micro-reactor to deliver 1-5MW of power for no less than 2 years without refueling

• Be licensed by NRC prior to operation

• Operate in subarctic climate at AF installation in Alaska. Meet all

Federal and State environmental laws and regulations

• Contract period: up to 30 years

• Interconnect with existing infrastructure

• Meet NIST, DoD and other cybersecurity standards

38Source: N/A

Request for Proposal

• Resilient Energy Supply Agreement for the provisioning, production, purchase and delivery of electricity and steam generated by an on-site Small Modular Reactor at Eielson AFB

– Contractor procures/finances/installs/owns/operates/maintains the energy production facility

– Government purchases electricity and steam at fixed price per kWh/per Mlbs.

– 20-year generation/purchase term; seven (7) year construction period and three (3) year demolition period

– Use of property conveyed via separate real estate agreement

39Source: N/A

• Government estimates the project size: 5 MW

40Source: N/A

• Includes Interconnection Discussions with Golden Valley Electric Association

• Requirements for construction will adhere to Code of Federal Regulations, Title 10-Energy for nuclear development

• Developer will work with NRC on NEPA, licensing and testing for operating permit.

– Will be included in executed contract

• Energy security and resilience included

• General Terms and Conditions outlined within the RFP

– Contractor-specific T&Cs can be submitted with the proposal for government’s review and consideration

• Only the Contracting Officer can affect changes

41Source: N/A

• The proposed evaluation factors are:

– Factor 1: Technical Approach

– Factor 2: Technical Risk

– Factor 3: Past Performance

– Factor 4: Price

• Non-price evaluation factors are listed in descending order of importance. When combined, the non-price evaluation factors are approximately equal in importance as price.

42Source: N/A

• Providers shall prepare the proposal according to the titles and page limits of each volume described below:

• Offeror shall prepare and submit one hard copy of Volumes I through IV of its proposal in separate three-ring binders and an electronic version.

– Price proposal files shall be submitted in PDF format & text searchable

• All amendments must be signed and returned.

43Source: N/A

Milestones

• RFP issuance: September 26, 2022

• Pre-proposal conference: October 12, 2022

• Cut-off for RFP questions: November 15, 2022

• RFP closing: November 29, 2022, 14:00 EST

• Any proposal received after this time is considered late and will not be accepted.

• Issue Notice of Intent of Award: est. June 2023

44Source: N/A

Points of Contact

• DLA Energy Installation Energy, Fort Belvoir, VA

• Andrea Kincaid, 571.363.8231, andrea.kincaid@dla.mil

• Charlene Woods, 571.767.8583, charlene.woods@dla.mil

45Source: N/A

WARFIGHTER ALWAYSWARFIGHTER ALWAYS 46

Real Estate Brief

Mr. Tom Brown Air Force Civil Engineer Center, Installations Directorate (AFCEC/CID)

Air Force Civil Engineer Center

Battle Ready… Built R ight!

Dave Mairs

AFCEC/CIUE

13 Oct 22

Nuclear Microreactor Energy Assurance

Lease Opportunity at Eielson AFB, AK

Your Success is Our Mission!

Purpose

To provide information about the Air Force Enhanced Use Lease and Energy Assurance Lease (EAL) program

Overview

■ EUL/EAL Program Goal / Objectives

■ What is an EUL/EAL

■ AF EUL/EAL Program

■ Benefits and Successes

■ EUL/EAL Solicitation

■ Qualified Lessee Selection

■ Keys to Success

■ Summary

What is an EUL/EAL?

An EUL/EAL is a lease agreement between the Air Force (AF) and a third-party for the development of non-excess, underutilized AF-managed land located at an AF installation; leased installation property must be Federally-owned Lessee is responsible for project utilities, infrastructure and services and may be taxed by state and local governments Developer (lessee) is responsible for design, construction, maintenance and operation of improvements to the leased property DAF receives cash rent payments and In-kind consideration (IKC) in return for right to develop leased property (greater than appraised Fair Market Value)

Energy Assurance Leases (EALs) are executed under the EUL program

AF EUL/EAL Program Goal of AF EUL Program: Monetize non-excess

AF real estate where and when it makes sense Maximize benefit/return to AF Compatibility with AF mission required Long-term project viability – must be self-sustaining from an operations and maintenance stand point.

Identifies and develops real property value-based transactions (VBTs), EULs and EALs and manages the portfolio

Provides long-term oversight to ensure both the AF and Lessee comply with statutory requirements of 10 USC § 2667 and lease documents

Goal of AF EALs: to provide installations with energy security and resiliency ensuring a reliable source of power during emergencies and power outages

15 active EULs & EALs (signed leases)

Total value received:

$110.2M (cash & IKC)

$180.3M estimated total Net Present Value (NPV)

5 EALs and 1 Energy-EUL in project development EALs provide energy resiliency to an installation (first right to power during emergencies or power outages)

Commercial and/or Private Partnership Required!

Benefits Air Force

■ EULs - Consideration (cash rent) can be used to recapitalize AF facilities and infrastructure while supporting AF initiatives

■ Can reduce installation operating costs

■ EALs - AF receives energy resiliency or other energy related benefits

■ EULs and EALs - Facilitate community collaboration and relations

Developer

■ Financially beneficial business deal

■ Potential tax incentives and proximity to utilities

■ Ensures a single and stable Lessee and ensures project site security with installation security

■ Generates and sells power to the Air Force

■ Local Community and State

■ Supports base, local, and State economic development; increases tax base (EULs and EALs) and generates jobs

Successes Commercial EUL projects in the AF portfolio

Hotels Business Parks Sports Complex Solar photovoltaic solar arrays Waste Reclamation Facilities Mixed-use commercial development

IKC received by AF installations Fitness Center - Nellis AFB, NV Security Gate - Hill AFB, UT Security Forces Bldg - Hill AFB, UT Fire Fighting Training Facility - Eglin AFB, FL Joint use airport - Eglin AFB, FL Sustainment, repair and maintenance (SRM) projects – multiple bases Energy Resiliency (first right to power in emergencies and power outages) - Tyndall

AFB, FL

Summary Goal of AF EUL and EAL Program:

EULs: Monetize non-excess AF real estate where and when it makes sense

EALs: Energy resiliency via first right to back up power during emergencies or power outages and/or other energy-related benefits

Projects involve the lease of Government-owned and AF-managed real estate to a private developer or utility company for commercial development in return for energy resiliency

Contact Information

EUL Program Contacts:

■ Mr. Dave Mairs, Program Manager EUL Execution Branch, Real Estate Development Division Air Force Civil Engineer Center (AFCEC/CIUE) Email: david.mairs@us.af.mil Telephone: 361-290-3400

■ Ms. Julia Cantrell Chief, EUL Execution Branch, Real Estate Development Division Air Force Civil Engineer Center (AFCEC/CIUE) Email: julia.cantrell@us.af.mil Telephone: 210-322-4699 mailto:julia.cantrell@us.af.mil

Your Success is Our M ission!

Questions & Networking

Ms. Charlene Woods

Lunch Break 1230-1400

Coal Plant Overview

Eielson AFB’s Central Heat & Power Plant

Process Overview

400#; 650 degree steam

100#; 450 degree steam

GVEA

10 MW (1988)

5 MW (1969)

5 MW (1956)

2.5 MW (1952)

2.5 MW (1952)

Boiler #6

Boiler #5

Boiler #3

Boiler #1

Boiler #2

Boiler #4

Operations (1 Supv) (5 Person Ops Crew 24/7)

Boiler Side 3 Positions Required by AFI 36-1068

- 1 – WG-10 Boiler Operator

- 1 – WG-08 Boiler Ops Asst

- 1 – WG-05 Ash Puller

TG Side

- 1 – WG-10 Power Cont

Supervision

- 1 – WS-09 Shift Supv

150,000 SqFt Facility

- 17 Out Bldgs/Structures

- 100ft Basement to Roof of main bldg (Supv & Asst are eyes/ears for entire area inside fence line)

Eielson AFB’s Central Heat & Power Plant

Maintenance (1 Supv)

- 6 Boiler Mechs (1 WL)

- 3 Pipefitters

- 5 Controls Techs (1 WL)

- 2 Materials Expediters

- 1 Welder

- 1 Electrician

95+% of facility/equipment maintenance done in-house

Coal and Rail (1 Supv)

- 8 Coal and Rail Ops (1 WL)

- 2 Locomotive Engineers

- 1 Locomotive Mech

3 Locomotives 12 Miles of track 24 Switches 18 Crossings

Plant Layout - Staffing

Plant Growth

Top Row

-New Boiler Ammonia Injection -New Boiler Sorbent Injection -New Boiler Chemical Processing -Plant Electrical Distribution Switchgear

Bottom Row

-Continuous Emissions Monitoring System

-Updated Plant Controls Network

Central Heat & Power Plant Workforce Overview

Current Workforce (Funded)

Operations = 26 Positions

- 5 person ops crews for 24/7 plant operations X 5 (WG-05 OT fills 5th crew)

- 1 Water Treatment/Lab Tech (WG-08)

- 1 Operations Supervisor

Coal & Rail = 12 Positions

- 8 Coal and Rail Ops (1 WL)

- 2 Locomotive Engineers

- 1 Locomotive Mech

- 1 Coal & Rail Supervisor

Maintenance = 19 Positions

- 6 Boiler Mechs (1 WL)

- 3 Pipefitters

- 5 Controls Techs (1 WL)

- 2 Materials Expediters

- 1 Welder

- 1 Electrician

- 1 Maintenance Supervisor

Operations: 24/7 Staffing; performs all boiler ops, turbine ops, water/condensate, and ash pulling operations.

Unfunded = 5 WG-08 Boiler Ops Asst and 1 WG-05 Boiler Ops Helper

Coal & Rail: Perform all coal operations to include coal purchasing, reception, processing, and ash removal. Performs all locomotive and rail operations, inspections, and preventative maintenance.

Unfunded = 1 WG-11 Locomotive Mech, 1 WL-08 Work Lead and 5 WG-08 Coal and Rail Ops

Maintenance: Keep a 67 year old plant running smoothly! Mix of old mechanical systems and modern tech heavy systems.

Unfunded = 2 WG-11 Controls Techs, 2 WG-11 Electricians, 3 WG-10 Boiler Mechs and 1 WG-10 Pipefitter

Current Shortfall

Full fill of 6 person Ops Crews 5 WG-08 and 1 WG-05

Provides for safe and efficient ops of a plant that’s changed significantly.

New Total: 32 Funded Positions

Full fill of Coal & Rail Positions 1 WG-11, 1 WL-08 and 5 WG-08

Increased plant demand from mission growth = more coal and a night shift to meet boiler requirements.

New Total: 19 Funded Positions

Partial increase 1 WG-11 Control Tech, 1 WG-11 Electrician and 2 WG-10 Boiler Mechs

Tailored to meet MX needs from plant modernization and ops tempo increase.

New Total: 23 Funded Positions

Central Heat & Power Plant Infrastructure and Distribution

100#; 450 degree steam Supplied to base Condensate returned to CH&PP 5-7% Loss

Electrical Distribution 7200 Phase to Phase \4160 Phase to ground Delta

Coal Plant Site Visit

Lt Col Christopher Higgins

354 CES/CC

Break 1600-1615

Questions & Networking

Ms. Charlene Woods, DLA Energy Ms. Judith Willis, SAF/IEE Energy

Mr. David Mairs, AFCEC/CIU Ms. Leslie Brown, SAF/GCN

Lt Col Christopher Higgins, 354 CES/CC

Closing Remarks

Ms. Nancy Balkus Deputy Assistant Secretary of the Air

Force for Environment, Safety and Infrastructure