Amd 0001 RFI Group 1.pdf

PJM CFE 2024 Amendment 0001 RFP SP0604-24-R-0421 Page 1 of 6

Request for Information – Group 1

1. Please note that RECs are only “minted” when a full MWh is produced and are not minted by kWh [Ex: if 1,999 kWh are produced, that only produces 1 EAC (REC) for that month. The next EAC (REC) will roll over to the follow month/period.

a. Thank you for the information

2. Please understand it takes several days to obtain data a lot of time, so the due date of August 30th, I think most people are probably behind the ball on getting pricing, even just for brown power. Coupled with that, layering on more complex arrangements can take a lot of time. I know you had asked guidance as to what a “reasonable” timeframe is for us to respond; I couldn’t tell you what a reasonable timeline is since I can’t get load data.

a. Assuming we are able to provide the correct LOA, in the essence of time, please be willing to make a request through the inbox with what you, as of right now, would think a reasonable extension would be and anything additional?

3. Is there are consultants assisting DLA with this procurement?

a. Yes. Reference Section L (O)(a).

4. Is there a password for Attachment 1, or is that something that was sent in another email?

a. There are passwords for Attachment I and II. Requests for these passwords can be sent to the following e-mail DLAEnergy-CFE@dla.mil. Contract Specialist are standing by to receive those requests.

5. Are you going to make these slides available to the attendees of this call?

a. Yes. Please refer to Amendment 0001.

6. GSA published a similar RFP are working with a consultant Enel X. It was not clear on the document if you have any consultant or energy advisor on your team or if this is basically a direct solicitation with DLA.

a. Yes. Reference Section L (O)(a).

7. Some of the accounts have been rejected when we tried to obtain load data already. Will there be a revised account list and what is the timing on that?

a. Please let us know what accounts you got rejected for, we will go back and research the information.

The Government will research which Letter of Authorization is required in Ohio and provide that form upon request.

8. We are a developer not a load serving entity. DLA only intends to contract with load serving entities, is that correct?

a. That is correct.

9. With the upcoming election, with the Executive Order, how does DLA envision if the future administration has a different path forward and the executive order can be changed, and how would that affect the procurement and plans going forward?

a. The Government is working to fulfill and going forward with the requirements we have now. The Government is not considering future hypotheticals.

10. Is this procurement going to be a similar structure as previous DLA RFPs, where the proposal is due and then there will be a discussion period thereafter, before the contract is awarded?

a. Yes, we do intend to entertain discussions.

11. Would you consider rearranging any of the groups of accounts for regulatory services?

a. The way that this structure was done was done by state, by utility, and by location. If you have a suggestion, you can quickly submit it to the inbox, and we review for consideration.

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12. The expectation is that the utility or developer will gain site control build a system and then sell that power or provide that power to the local delivery point within the PJM queue, presumable next or near one of these supporting installations, and the off taker of the power is DLA? Is that conceptually right?

a. The off taker will be the installations within the pricing group.

13. Would the attributes, the RECs go to the installation?

a. Correct, the EACs would go to the installations.

14. The Solicitation notes that 10 USC 2922a requires approval and is a condition precedent. A Contractor would not typically enter into PPAs that would become stranded if such approval is not achieved. Will this approval be obtained prior to contract award?

a. Yes, Department of Defense approval is required prior to contract award.

15. And it says commodity only, is that inclusive of the REC or exclusive and it’s just the energy portion?

a. Inclusive of the REC.

16. These assets that are being proposed can’t be TBD, they have to be real at some level: site control or be developed now?

a. Yes. Given the long interconnection queue within PJM, the Government anticipates that several projects are already being developed at some level. However, In accordance with 10 USC 2922a, the Government requires the provision of a new generating asset (preconstruction).

17. Construction could only begin after your award of the LSE?

a. Correct, as there may be some NEPA concerns. NEPA compliance is required with regard to Section C

(2)(b).

18. The developer or utility would have to build new, renewable energy source system, correct? It can’t be from existing assets?

a. Correct. However, New-Build CFE also includes new capacity at an existing resource modified to increase output, such as through an expansion or renovation, would also be considered New-build CFE.

However, only the expansion or renovation CFE would be acceptable.

19. This does not preclude the specific installation, if it makes sense, to procure additional CFE through their 30-year PPA authority? Or is this supposed to be the answer for all of those installations?

a. We are soliciting a 20-year delivery term for all the installations. For clarification, the authority that we are using, does go up to 30 years, but we are only soliciting for a 20-year delivery term.

20. The Government has suggested that you will be signing with the developers the PPA, but I wanted to clarify, are you looking to sign that or are you looking for the LSEs to sign that upstream and you would just be signing contracts with the LSEs?

a. The Government will sign the contract with the Load Serving Entity as we cannot contract directly with the developer. They have to make sure they can get it to all the accounts.

21. Just wanted to confirm. The other area I was looking at, in your presentation you talk about the 100% CFE by 2030, 50% 24/7 by 2030 as well, but you are looking for 35% on an annual basis, is that how I should read this?

a. Correct.

22. Looking at section 2a where I see some of it is in annual, some of it is within the same hour, but it’s all within the same paragraph. Are you looking at the 35% matching on an annual basis, how is that 35% measured?

a. The Government is pursuing proposals that minimize the number of on-peak hours. Reference Section L.5(c)(1) and M.2.

23. Are you looking for a subaccount for each utility or are you looking for a subaccount for the CLIN itself?

Typically, when customers are looking to do that, it is usually at a customer basis, weather it is in the CLIN or even by one of the roll ups of the CLIN, say one of the roll ups has 5 accounts or so. Looking at Wright Patterson Air Force Base, you have 5 accounts, so maybe those 5 accounts regardless of what utility they are in

PJM CFE 2024 Amendment 0001 RFP SP0604-24-R-0421 Page 1 of 6 roll up into a subaccount and DLA Columbus is another subaccount. Or they could all be under one sub-account and all 6 meters are pointing to that one subaccount, versus maybe of those 6 there are 6 different utilities and so 6 separate sub-accounts. Just trying to see which is it, both could be available, but I know from my point of view, typically it is at a customer-centric basis.

a. The goal of subaccounts is for transparency for the Government to see exactly what we are being charged. If there is a different way that would potentially be a better approach, please put that as another option and we will consider it. The intent is to not make this circumstance cumbersome on the vendor to set up excessive sub-accounts.

24. Do you require the load serving entity with this proposal response to prove or show site control of the new-build CFE asset?

a. Yes, we require a Load Serving Entity with the proposal. Any information that is already established, the Government requests that it be provided.

25. That would further translate into a real project by that developer showing the load serving entity or site control of the assets they are proposing?

a. Yes, as long as it meets requirements of EO 14057 and 10 USC 2922a that requires the provision of the asset. Commercial operation must be reached after contract award.

26. It’s not clear in the solicitation exactly when the price portion will be due. So, I wanted to confirm if that’s going to be due with the technical piece on August 30th, or if there will be a separate date to be announced at a later time. Can you comment on that?

a. Price proposals will be due the day all proposals are due. Please refer to Amendment 0001 for updated "Offer Due Date" of November 4, 2024

27. Regarding Attachment VII: Please confirm the pricing for Attachment VII for the Generation Rate is inclusive of the EAC (REC).

a. Correct.

28. Next question is with regards to start dates and times. Many of the current retail contracts expire in December of this year, and there is some language, specifically section L of the solicitation, around submission modification revision of proposals and it says that all offers should be valid for 180 days and we can refresh pricing every 30 days. If an award is anticipated in December of this year, how will those retail supply contracts flow for a December start? If there is a potential extension that we must keep proposals valid for or refreshed for those 180 days, are there going to be extensions given to suppliers who have existing retail supply agreements in place with those installations that are in here?

a. With regards to the 180-day marker, we request that proposals be valid for 180-days after initial submission. If we get to the point where we are approaching the 180-days. The Government would request each offeror to extend the proposals for a defined amount of time. The start time for the 180 days begins as soon as proposals are submitted. The Government does understand that contracts are expiring in December and are trying to mitigate this circumstance. If the concern is that Offerors will not have enough time to develop a proposal, please let us know that more time is needed in writing.

29. Is there an anticipated date for the award?

a. Contract award date is a moving target based upon the requests we anticipate receiving from industry.

30. Regarding the Terms section: The DLA indicated the term would be a 20-year "shell" with four, 5-year terms included. Should the LSE procure a 20-year PPA that starts in year 3 or 4 of the contract, would the DLA be willing to extend another term to be conterminous with the underlying PPA? Alternatively, would the DLA be willing to shorten the tail of the contract to be conterminous with, for example, a 15-year term that ends in Year 18 or 19 of the "shell"?

a. The Government intends to award for a 20-year PPA delivery term.

31. Request for extension. Vendor would like to propose a two-step process, Step 1 technical proposals will be due on August 30th, where the pricing will be due on September 30th of 2024.

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a. Please refer to Amendment 0001 for updated "Offer Due Date" of November 4, 2024. All proposal/volumes are due on the same day.

32. Based on the results of the Q/A period, will a second Q/A period occur?

a. The Government does intend to host a 2nd Informational Session. Date/time is TBD.

33. Will the contract award be for one 20-year term at a single price, or one 5-year term with amendments to extend the contract to the awarded supplier for the remaining 15 years?

a. Per the Retail Electricity CLINs there is a 5 year limitation in term length in accordance with Federal

Acquisition Regulation. Per the CFE CLINs, the purchase authority being used is 10 USC 2922a that allows the Department of Defense to enter into contracts for up to 30 years. Since both corresponding CLINs have to be delivered by the same entity, the Government will solicit the initial 5 year term of Retail Electricity competitively with the CFE CLIN. When that 5-year term expires, the Government intends to do a sole source procurement to the same Retail Supplier for another 5 years, until we reach the end of the 20-year delivery period. Essentially, it will be four 5-year portions for the Retail Electricity. The Retail Electricity CLIN cannot be purchased under 10 USC 2922a as that specific authority requires the provision of new generating assists.

34. In order to allow suppliers time to review and fully respond to the solicitation requirements, would the DLA consider an extension on the following due dates? Supplier questions deadline, technical response deadlines. We were anticipating a 6-8 week turn around based on our initially meeting back in March. This is due to the size/complexity of the deal and approvals needed internally. If possible, any extension offer would be greatly appreciated.

a. Please refer to Amendment 0001 for updated "Offer Due Date" of November 4, 2024. The new deadline for inquiries is September 23, 2024. The Government will answer all Requests for Information via amendments before the proposal dues date.

35. With this Solicitation, there is currently missing account data, inaccurate data, and missing letters of authorization required for suppliers to pull data in certain jurisdictions. This information is required in order to prepare a response, especially given the hourly CFE matching requirements. In light of this, as well as the significant amount of prework required for suppliers to respond to a Solicitation of this nature, Contractor respectfully requests an extension of the BAFO due date. Contractor would recommend 45 days following the provision of the Missing Usage Information.

a. Please refer to Amendment 0001 for updated "Offer Due Date" of November 4, 2024.

36. With regard to the 20-year term, when does that start? Does it start whenever the LSE starts flowing power, say December 2024, or does that term start really when asset hits COD? And where I am going with that is, should an LSE look to procure a 20-year PPA, which could be likely a 2028 COD, which then pushes us 3 or 4 years beyond 20 years plus Dec 24? When does the clock actually start?

a. The 20-year term starts on the date of contract award. The Government is aware that it’s going to take a few years to get a generating asset online as we anticipate just receiving Grid-CFE until that time when the asset does come online. The contract term will only be for 20 years.

37. Briefly explain the 5-year maximum term limit. Your intention is to renew it every 5-years?

a. Per the Retail Electricity CLINs there is a 5-year limitation in term length in accordance with Federal

Acquisition Regulation. Per the CFE CLINs, the purchase authority being used is 2922a that allows the Department of Defense to enter into contracts for up to 30 years. Since both corresponding CLINs have to be delivered by the same entity, the Government will solicit the initial 5-year term of Retail Electricity competitively with the CFE CLIN. When that 5-year term expires, the Government intends to do a sole source procurement to the same Retail Supplier for another 5 years, until we reach the end of the 20-year delivery period. Essentially, it will be four 5-year portions for the Retail Electricity. The Retail Electricity CLIN cannot be purchased under 10 USC 2922a as that specific authority requires the provision of new generating assets.

38. There is a scenario where the respondent has all of these assets already within their own portfolio, and that might simplify things, but any thoughts you have on that orders of operation and contracting, the fact that the

PJM CFE 2024 Amendment 0001 RFP SP0604-24-R-0421 Page 1 of 6 respondents ability to finalize their CFE supply solution may be contingent on being selected in the RFP, and whether or not some time would be allowed to allow the winning respondent to finalize their PPA or CFE agreement, negotiation, and contract execution? Did that make sense?

a. Yes, the Government does intend to enter into discussions. We are open to suggestions for extending the time to partner with developers and prepare a viable proposal. Please submit extension requests as quickly as possible and recommend what would be a reasonable amount of time to develop a proposal.

39. Please confirm when you will be posting to SAM.gov the results of the informational session held Monday August 5th, 2024.

a. The materials from the Informational Session will be posted in Amendment 0001.

40. It is stated that the 20-year term commences on the contract award date. Please confirm: Should the contract term begin with the local utility’s Dec-2024 meter read date?

a. No. The term begins on the contract award date.

41. Given the constraints of EO 14057, mandating that CFE generation be from resources “placed in service on or after October 1, 2021,” will this disqualify CFE from nuclear facilities unless those nuclear facilities are new or have new qualifying capacity after October 1, 2021?

a. Correct. All resources must be placed in service on or after October 1, 2021 and be in compliance with

EO 14057.