Informational Session PJM 12 Sep 2024.pdf

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

Informational Session II DLA Energy Charlene Woods

Sep. 12, 2024

WARFIGHTER ALWAYSWARFIGHTER ALWAYS

Mission & Vision

Mission

The Defense Logistics Agency Energy’s mission is to enable mission readiness by providing globally resilient energy solutions to the Warfighter and Whole of Government

Vision

DLA Energy’s vision is to be the trusted leader in innovative energy solutions aligned with the speed of change

Agenda

• Introduction

– Welcome

• Overview of Informational Session

– Time

– Housekeeping items

– How to submit inquires

– Posting of Informational Session II on future amendment

• Procurement

– CLIN Structure

– Amendments to the RFP

– Submission and milestones

– PJM General Requirements

– Proposed Evaluation Approach

Welcome

• Office of the Deputy Assistant Secretary of Defense for Energy Resilience and Optimization

– Bob Thompson, Principal Deputy Assistant Deputy Assistant Secretary of Defense for Energy, Installations and Environment

– Rebecca Isacowitz, Deputy Assistant Secretary of Defense for Energy Resilience & Optimization

• Defense Logistics Agency Energy

– Mr. David Kless, Deputy Commander

– Gabriella Earhardt, Head of the Contracting Activity

Overview

• Time: 2:00pm-3:30 pm EST

• Session is being recorded

• Inquires: Submit to DLAEnergy-CFE@dla.mil

• Posting of Materials

– All materials will be recorded and posted to Sam.gov via amendment mailto:DLAEnergy-CFE@dla.mil

PJM Procurement

CLIN Structure – Updated

Net Annual Qty Net Annual Qty Percentag e

(kWh) (kWh) (Purchase d CFE)

FFP LMP

99th Army Reserve (PA) 47 8,854,591 3,099,107 5,755,484 60.3%

99th Army Reserve PA - Duqu 5 1,334,549 467,092 867,457 9.1%

99th Army Reserve PA - UGI 2 590,387 206,635 383,752 4.0%

99th Army Reserve (NJ) 5 1,350,642 472,725 877,917 9.2%

99th Army Reserve (MD) 10 2,555,848 894,547 1,661,301 17.4%

14,686,017 0 100%

Bettis 2 49,314,422 17,260,048 32,054,375 5.7%

Carl i s le Barracks 2 25,593,699 8,957,795 16,635,904 2.9%

DLA Susquehanna 2 321,119,900 112,391,965 208,727,935 36.9%

Tobyhanna 1 66,404,977 23,241,742 43,163,235 7.6%

JBMDL 157 48,176,128 16,861,645 31,314,483 5.5%

Joint Base Henderson-Hal l 2 16,224,392 5,678,537 10,545,855 1.9%

US National Arboretum 9 1,285,767 450,018 835,749 0.1%

Marine Barracks Washington 3 6,739,455 2,358,809 4,380,646 0.8%

Naval Research Lab (DC) 1 108,424,768 37,948,669 70,476,099 12.4%

National Insti tutes of Heal t 3 56,814,266 19,884,993 36,929,273 6.5% Fort Detrick 5 169,896,274 59,463,696 110,432,578 19.5%

Fort Detrick - Forrest Glen 3 1,105,724 387,003 718,721 0.1% 871,099,773 100%

VA MD Healthcare 2 19,294,255 6,752,989 12,541,266 2.0%

Loch Raven 6 3,234,913 1,132,220 2,102,693 0.3%

Naval Research Lab (MD) 1 108,424,768 37,948,669 70,476,099 11.2%

CSSG 1 9,683,946 3,389,381 6,294,565 1.0%

Army Corps of Engineers 23 118,236,697 41,382,844 76,853,853 12.3%

Maryland Procurement Office 25 622,619,259 217,916,741 404,702,518 64.5%

Fort Meade 298 83,282,074 29,148,726 54,133,348 8.6% 964,775,912 100%

DLA Columbus 1 52,282,852 18,298,998 33,983,854 12%

Wright-Patterson Air Force B 5 385,750,650 135,012,728 250,737,923 88%

438,033,502 100%

TOTAL 621 2,288,595,204 550,833,994 1,022,977,418

Group 4 CLIN 0007 CLIN 0008

Group 2 CLIN 0003 CLIN 0004

Group 3 CLIN 0005 CLIN 0006

Retail Electrcity

(approx. 65%)

CFE

Allocation

Total Annual Electricity

Requirement (kWh)

Group 1 CLIN 0001 CLIN 0002

Group # DOD Installations Number of Accounts New-build

CLIN #

New-build CFE (approx. 35%)

Retail Electrcity

CLIN #

Amendments to the RFP

• Solicitation: Posted 31 July 2024

• Amendment 0001: Posted 14 August 2024

– Submission Date: 4 November 2024

– RFI Group I

– Informational Session I materials

• Amendment 0002: Posted 15 August 2024

– RFI Group 2

– Updates to RFP

• Amendment 0003: Posted 30 August 2024

– Updated CLIN Structure

– RFI Group 3

– Revised Attachments II & IX; Attachment X – Reserved

• Amendment 0004: Posted 11 September 2024

– Updated Installation Data Sheet – Attachment I

– RFI Group 4

– Updates to RFP

Submissions and Milestones

Submissions

• Vol. I - Technical Proposal

• Vol. II - Past Performance

• Vol. III - Small Business Participation

• Vol. IV - Price Proposal

• Vol. V - Contract Documentation

Milestones

• RFP issuance: July 31, 2024

• Informational Session I: August 5, 2024

• Informational Session II: September 12,

• Cut-off for RFP questions: September 23,

• RFP closing: November 4, 2024, 14:30

EST

• Late proposals will not be accepted.

All questions and answers provided during this Informational Session will be published via Amendment in Sam.gov

PJM General Requirements

CFE

• 35% needed by 2030

• 10 U.S.C. § 2922a allows us to enter into a long-term contract

• 20-year delivery term

• Fixed price

Retail Electricity

• FAR allows a 5-year term maximum

• 10 U.S.C § 3204 and 41 U.S.C § 3304 allows under certain conditions, contracting without providing full or open competition

• 1st 5-year term will be awarded competitively

• Award in 5-year increments for the duration of Power Purchase Agreement

• Locational Marginal Price

Proposed Evaluation Approach

• The proposed evaluation factors are:

• Factor 1: Technical Capability/Risk

• Factor 2: Past Performance

• Factor 3: Small Business Participation

• Factor 4: Price Proposal

Factors 1 and 2 are of equal importance. Factor 3 is significantly less important than factor 1 individually and factor 2 individually. When combined factors 1, 2, and 3 are approximately equal in importantance as factor 4. In cases where factors 1, 2, and 3 are assessed to be equal to the evaluation of factor 4, price will be the determining factor.

Points of Contact

• DLA Energy Carbon Pollution Free Electricity Directorate, Fort Belvoir, VA

• Charlene Woods, 571-363-8864

• Felicia Hightower, 804-638-8728

• Fadzayi White, 571-999-3606

• Email DLAEnergy-CFE@dla.mil

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Carbon Pollution Free Electricity (CFE) Back-Up Slides

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Commitment to Accelerating the Clean Energy Transition

Source: EO 14057

Carbon-free Sources

100% annual CFE use by 2030 for the federal government

50% hourly matched CFE use by 2030 for the federal government

Expanded on-site generation at federal sites

Carbon Pollution-free Electricity (CFE) targets in EO 14057

Solar

Geothermal

Wind

Nuclear

Renewably sourced hydrogen

Fossil resources w/ active capture & storage2 of CO2

Marine & hydrokinetic1

Hydroelectric

1. Includes tidal, wave, current, and thermal 2. Capture and storage of carbon dioxide emissions must meet EPA requirements More information can be found in the Implementing Instructions for Executive Order 14057 Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability

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CFE Sourcing Strategies

Source: Implementing Instructions for EO 14057

CFE delivered as part of default electricity service

CFE generated onsite at federal sites from CFE-compliant sources

CFE generated off-site in addition to grid mix, procured from a utility or retail provider

Certificates (e.g.

RECs, EFECs, ZECs) for CFE procured separately from the electricity

Grid-supplied CFE Onsite CFE Purchased

CFE

Energy Attribute

Certificates (EAC)-Only

100% CFE on an annual basis

More information can be found in the Implementing Instructions for Executive Order 14057 Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability

Agencies are deploying four distinct, additive CFE sourcing strategies to meet 2030 CFE targets

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CFE Requirements Optimize the Impact of CFE Procurements

Source: Implementing Instructions for EO 14057

GENERATING

TECHNOLOGY

BALANCING

AUTHORITY

PLACED

IN SERVICE

CFE

requirement

Produced by zero-carbon sources

Delivered to the same balancing authority as federal facility consumption

Generated by resources placed in service after

October 1, 2021

Rationale Maximizes impact of electricity decarbonization targets

Ensures that unbundled EACs are physically tied to

Scope 2 emissions from electricity

Increases likelihood that CFE is additive to existing decarbonization efforts

Note: All solicitations must be compliant with all Federal Acquisition Regulations and DLA contracting guidelines: https://www.dla.mil/AcquiPolicy-and-Directives/ https://www.dla.mil/AcquiPolicy-and-Directives/