Amd 0009 RFI Group 8.pdf

PJM CFE 2024 Amendment 0009 RFP SP0604-24-R-0421 Page 1 of 2

Request for Information – Group 8

1. The Government has asked suppliers to present a CFE price as part of its BAFO. However, the Government has also asked that the project be New-build CFE, defined as “built for fulfillment of the contract”. For the Contractor to ensure that the “built for fulfillment of the contract” requirement is met, it would not be possible for Contractor to enter into PPAs prior to its award and final negotiation of the agreement. As such, Contractor should be offered the opportunity to reject the award if the CFE price can no longer be achieved due to the timing issues associated with ensuring the “built for fulfillment” requirement is met.

a. Yes, Contractors always have the opportunity to withdraw prior to contract award in writing.

2. If there is a project in the development cycle and it was used as the basis of proposal and it was early in the NEPA process or the NEPA process hadn’t started but it was getting ready to start. The NEPA process can take a year or two years, maybe more at times. I’m trying to think how this process would play out. If project that is being considered for award has it’s NEPA process ongoing, based on what I just heard, the government can’t make an award. Would it be a contingent award? I’m trying to figure out how it might work, submitting a proposal without already having a favorable NEPA outcome, and how an award or a contingent award process might work.

a. All exceptions to the solicitation can be submitted in accordance with Section L.4(K) Exception to Terms and Conditions.

3. L.5. Proposal Content. In the opening paragraph, it states “delivered CFE shall be no more than 35%”, but in the Implementation plan it states, “delivered CFE shall be no less than 35%”. Please confirm if the 35% CFE is a minimum or maximum and that this is based on an annual basis.

a. 35% requirement is the minimum of the estimated total electricity required at each installation.

4. Section C.1.b. Please confirm that your definition of “firm” relates to the physical delivery of electricity by the supplier, not that the shape of the electricity will be firmed, as in a block purchase

a. Correct. The term "firm" refers to the physical delivery of the electricity. Not a block purchase.

5. Excusable Delay (page 22). Does this apply to the upstream asset. Speaking of which, is there a milestone date?

a. Yes, if the circumstances apply. The milestone date for an asset to come online is Jan 1, 2030, unless there is an excusable delay.

6. Section C.2.a. After reading, please confirm the understanding of this clause is that during the first 12 months after commercial operations are achieved by the underlying CFE asset, if the asset underperforms to the minimum amounts shown in Table 1, then the supplier can backfill in with EACs. Starting the next 12 months, if this occurs again, then the DLA can terminate. Is this correct?

a. Confirmed

7. Over production is not an issue, just the minimum production, correct?

a. Please reference M.2 Factor 1

8. Typically, there are minimum guarantee provisions in the underlying PPA between the supplier and the developer for shortfalls. These may include similar EACs, though not asset specific EACs, would these be sufficient to comply with the requirement beyond the first 12 months?

a. EACs shall be Executive Order 14057 compliant.

9. What sort of “price negotiations” is the DLA envisioning? On the Fee?

a. The Government will discuss any exceptions to the terms and conditions submitted with an offeror’s proposal. The Government may negotiate any charges that are within the span of control of the contractor. Any charges outside the span of control (Example, any tariff-based charges from PJM or the local utilities) will not be negotiated.

PJM CFE 2024 Amendment 0009 RFP SP0604-24-R-0421 Page 2 of 2

10. Termination for Convenience. Should the supplier enter into a PPA for the sole purpose of supplying the DLA with CFE and the DLA decides to “terminate for convenience” please confirm the DLA will still pay any liquidation damages with regard to the remainder of the PPA and market.

a. The Government will comply with the 52.212-4 Contract Terms and Conditions – Commercial Products and Commercial Services. For additional terms, please reference Section I All exceptions to the solicitation can be submitted in accordance with Section L.4(K) Exceptions to Terms and Conditions.

11. Volume II/Factor 2.C. With regard to references – please confirm these references are CFE developers the supplier has previously contracted with.

a. Correct. Please reference section L.5(B)(III).

12. Volume IV/Factor 4.C. With regard to pricing – please confirm the “generation rate” is specific the CFE component only.

a. Correct.

13. Attachment XIV. If E.O. 14057 becomes null and void and is rescinded, and the contracting process is not yet complete, will the DLA continue to move forward with the expectation that the contract will be 20-year contract for “grid” power?

a. The government has no current plans to modify the expected contract years, or an end or cancel the solicitation.

14. Attachment VII / Pricing Sheet. With regard to the “projects” listed (“Generation Asset #1, #2, etc) – is the expectation of the DLA that the supplier will provide several projects to “pick” from? Please note that the projects listed will be indicative if this is the case. The intent is not to actively start negotiations until an award is set. In light of that, would the DLA rather have a general price based what the supplier can reasonably expect to procure in the market?

a. Please refence the sample in Attachment VII, via Amendment 0009.

15. The Transaction Fee is applied to all MWhs supplied (CFE and Non-CFE), correct?

a. Yes, the transaction fee applies to all kWhs.

16. Attachment X illustrates a CFE Reporting Example. Based on this, can you confirm the following: It is OK for the CFE on a given hour to below 35% (see HE1-7 & HE 17-24). The DLA will not purchase the CFE in excess of its load requirement on given hour (See HE9-15).

a. The New-build CFE Net Annual Quantity defined in Section B, Table 1 represents a minimum CFE quantity supplied from qualifying CFE generation sources on a net annual basis, representing 35 percent of the Government’s Total Annual Electricity Requirement. Please reference Section B(2)(c).