SF 30 Amd 0004_9.11.2024.pdf

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DLA Energy - Carbon-Pollution Free Electricity/Retail Electricity 2024
Solicitation number
SP0604-24-R-0421
Issued by

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This document is Amendment 0004 to Solicitation SP0604-24-R-0421 for the Defense Logistics Agency Energy's procurement of carbon-pollution free electricity (CFE) and supplemental retail electricity in the PJM Interconnection region. The solicitation has a 20-year contract term and requires the successful offeror to provide New-build CFE to meet approximately 35% of the total electricity requirement for various federal accounts, with the remaining 65% to be supplied as retail electricity.

Key details include: the definition of the PJM CFE Settlement Point where the CFE will be delivered and settled; the requirement for the offeror to specify the PJM node(s) where the proposed CFE generating facilities will interconnect; and the treatment of transmission costs, congestion, and losses. The amendment also covers force majeure provisions, the Government's ability to direct the use of energy attributes to satisfy state RPS requirements, and evaluation factors related to the offeror's technical approach and pricing. Proposals are anticipated to be due approximately 30 days after solicitation issuance, with contract award planned for December 2024.

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Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing items 8 and 15, and returning or (c) By separate letter or electronic communication which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

E. IMPORTANT: Contractor is not is required to sign this document and return copies to the issuing office.

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NUMBER 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQUISITION NUMBER 5. PROJECT NUMBER (If applicable)

7. ADMINISTERED BY (If other than Item 6) CODE

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

FACILITY CODE

9A. AMENDMENT OF SOLICITATION NUMBER

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NUMBER

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended. is not extended.

12. ACCOUNTING AND APPROPRIATION DATA (If required) copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NUMBER AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NUMBER IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15C. DATE SIGNED

15A. NAME AND TITLE OF SIGNER (Type or print)

16C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

PAGE OF PAGES

6. ISSUED BY CODE

8. NAME AND ADDRESS OF CONTRACTOR (Number, street, county, State and ZIP Code) (X)

CODE

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

Previous edition unusable

SP0604

Charlene B. Woods

PJM CARBON-POLLUTION FREE ELECTRICITY/RETAIL ELECTRICITY

REQUEST FOR PROPOSALS -SP0604-24-R-0421

See Continuation Page

SP0604

DEFENSE LOGISTICS AGENCY ENERGY

8725 JOHN J. KINGMAN ROAD, STP 3950

FORT BELVOIR, VA 22060-6222

BUYER/SYMBOL: Felicia Hightower /DLA Energy-CC

RFP/SP0604-24-R-0421

1 8

09/11/2024

07/31/2024

PJM CFE 2024 Amendment 0004 RFP SP0604-24-R-0421 Page 2 of 8

1. The changes set forth herein are incorporated into Solicitation SP0604-24-R-0421.

Section A

2. Page 2, Section A, Definitions, is hereby amended to the following:

• “Day-ahead Price” is as defined in PJM Open Access Transmission Tariff, Section I (Common Service

Provisions), Subsection 1 (Definitions). Day-ahead Price is also referred to as “Day-ahead LMP.”

• “Force Majeure Event” means events or causes beyond the reasonable control of, and without fault or negligence of, the Contractor claiming force majeure that unavoidably prevents or delays performance despite the due diligence of the party claiming force majeure (refer to H.5).

Examples of these causes are: (1) acts of God or of the public enemy, (2) acts of the Government in either its sovereign or contractual capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine restrictions, (7) strikes, (8) freight embargoes, (9) unusually severe weather, and (10) utility interruptions.

• “PJM CFE Settlement Point” means the delivery point to financially deliver and settle the CFE with the Government, such as the generation node(s), a PJM hub (e.g., Western Hub), or the applicable Residual Metered Load Aggregate.

• “Real-time Price” is as defined in PJM Open Access Transmission Tariff, Section I (Common Service Provisions), Subsection 1 (Definitions). Real-time Price is also referred to as “Real-time LMP.”

• “Residual Metered Load Aggregate” and “Residual Metered Load Aggregate Price” are as defined in PJM Manual 28, Operating Agreement Accounting, Section 3.7.

• “Utility Interruptions” A short- or long-term loss of the electric power to an area brought on either by a planned or emergency outage in the generation, transmission or distribution system serving the area.

3. Page 4, Section A.1.2, Acronyms, the following are hereby amended to the following:

• CLIN – Contract Line-Item Number

• NITS - Network Integration Transmission Service

• PJM - PJM Interconnection, LLC

Section B

4. Page 5, Section B, Authority, is hereby amended to the following:

• Retail Electricity: For the purchase of Retail Electricity as a supply, Federal Acquisition Regulation allows a 5-year maximum contract term. To fulfill the full contract delivery period of 20 years, the Government intends to utilize 10 U.S.C § 3204 and 41 U.S.C § 3304 as each authorize, under certain conditions, contracting without providing full or open competition. The PJM market mandates one energy supplier per meter, regardless of renewable or retail power distinctions. Due to this limitation, the Retail Electricity component will initially be awarded competitively, and later be awarded on a sole source basis to the successful offeror in five (5) year increments for the remainder of the contract.

5. Page 5, Section (2)(b), Public Utility Commission is hereby amended to delete the Illinois Public Utility

Commission.

6. Page 5-6, Section (2)(b), Utility Service Area is hereby amended to update the following:

FROM:

Philadelphia Electric Power Pennsylvania Power and Light Public Service Enterprise Group

TO:

PECO Energy Company PPL Electric Utilities Corporation Public Service Electric and Gas Company

PJM CFE 2024 Amendment 0004 RFP SP0604-24-R-0421 Page 3 of 8

7. Page 5-6, Section (2)(b), Utility Service Area is hereby amended to add the following:

• Duquesne Light Company

• Delmarva Power & Light Company

• The Cleveland Electric Illuminating Company

8. Page 6, Section (2)(c) Carbon Pollution Free Electricity (CFE), is hereby amended to the following language:

• The Government is soliciting offers for a 20-year contract for the supply of New-build CFE and associated Energy Attribute Certificates (EACs), sources must comply with all requirements of 10 U.S.C § 2922a and EO 14057. The CFE provided under this contract shall be produced by a generation asset that will become operational as a result of the execution of this contract. The contract term includes all aspects including provisioning, construction, and delivery of the generating asset, as applicable. The 20-year contract term commences on the contract award date and is inclusive of any period required after award for the proposed CFE generation facilities to achieve commercial operation. The Government’s commitment to purchase CFE from these facilities begins as of each facility’s respective Commercial Operation Date and concludes as of the termination of this contract.

• The offered price shall include the cost of energy produced from the CFE resource(s), and associated EACs, but the offered price shall not include the capacity or ancillary services attributes. The Government will not receive the benefit, cost, or risk of the PJM capacity attributes or ancillary services attributes from the CFE resource(s).

9. Page 7, Section (2)(e) is hereby amended to the following language:

• The charges and credits referenced in Section C 3(d) of the solicitation shall be a direct pass-through to the Government with no additional mark up and shall be invoiced in accordance with Attachment IX Invoice and Payment Instructions.

10. Page 7, Section B, Table 1, is hereby amended to the following:

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 Washingto 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 Offic 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

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 #

Group 4 CLIN 0007 CLIN 0008

Group 2 CLIN 0003 CLIN 0004

Group 3 CLIN 0005 CLIN 0006

PJM CFE 2024 Amendment 0004 RFP SP0604-24-R-0421 Page 4 of 8

Section C

11. Page 8, Section C (1)(a), General Performance Requirements is hereby amended to the following language:

• Contractor shall supply New-build CFE, and the additional Retail Electricity necessary to fulfill customer’s total load, along with any ancillary services required to deliver electricity to the Point of Delivery for each account under the contract. The delivered CFE shall be no less than the New-build CFE Net Annual Quantity defined in Section B, Table 1, which corresponds to 35% of the estimated total electricity required at each installation. The remaining approximately 65% will be the additional Retail Electricity. The New-build CFE requirement specified in Section B, Table 1 will begin no later than January 1, 2030.

12. Page 9, Section C (2)(a), CFE Performance Requirements is hereby amended to the following language:

• If the amount of CFE Production is less than the New-build CFE Net Annual Quantity defined in

Section B, Table 1 for any rolling 12-month period, the Contractor shall provide EACs for that 12-month period at the contract rate to make up for the shortfall. Starting with the end of the first instance of the rolling 12-month period in which the amount of CFE Production was less than the New-build CFE Net Annual Quantity defined in Section B , if the generating asset is not able to produce the New-build CFE Net Annual Quantity defined in Section B, Table 1 in any rolling 12-month period, the Government may terminate for cause. This provision shall not apply to a shortfall that is caused by a force majeure event, provided that it is successfully demonstrated to the Government.

13. Page 9, Section C (2) (d), Environmental Attributes is hereby amended to the following language:

• ENERGY ATTRIBUTES

• The Government shall own and retain the rights to the energy attributes associated with the purchase of

CFE under the contract. The Contractor shall guarantee that the energy attributes associated with the CFE shall not be sold, transferred, or retired on behalf of any party, other than the Government. The Contractor shall deliver all EACs necessary to meet the CFE requirements to each installation.

• The Government reserves the right to direct the Contractor to use and retire some of the energy attributes associated with the purchase of CFE under the contract to satisfy the state RPS requirements of one or more accounts to be specified by the Government, which in turn will reduce the number of RECs to be purchased by the Contractor to satisfy the Government’s state RPS requirements.

14. Page 9-10, Section C(2)(f), Attestation is hereby amended to the following language:

• For the total amount of CFE supplied to the Government during the reporting period defined in paragraph (c), the Contractor shall properly complete and submit Attachment III - Attestation Forms or equivalent document. The completed Attestation Forms shall be provided to the same location(s) and on the same schedule as the Energy Attributes.

• All submitted Attestation Forms shall affirm that the energy attributes associated with the CFE purchased, except for the energy attributes which were used in satisfaction of the Government’s state RPS requirements under the Government’s directions:

iv. Complied with the vintage, region and on-line date requirements.

• All Attestation Forms shall be sent with the CFE Report 45 days after the end of each CFE Compliance Year.

15. Page 11, Section C (3)(a), Firm Fixed Price New-Build CFE is hereby amended to the following language:

• The Government shall pay the Contractor a firm fixed price for New-build CFE and all energy attributes in accordance with proposed and mutually agreed to Attachment VII – CFE Production and Pricing Sheet.

16. Page 11, Section C (3)(b), Retail Electricity is hereby amended to the following language:

PJM CFE 2024 Amendment 0004 RFP SP0604-24-R-0421 Page 5 of 8

• If, in any hour, the Government’s electricity requirement exceeds the quantity of New-build CFE supplied, this additional Retail Electricity shall be priced at the applicable Real-time Residual Metered Load Aggregate (PJM residual load zone) Price (LMP). Prior to the Commercial Operation Date of any New-build CFE resource, all electricity supply shall be priced at the applicable Real-time Residual Metered Load Aggregate LMP.

17. Page 11, Section C (3)(d)(i), Renewable Energy Credits is hereby amended to add the following language:

• The Government reserves the right to direct the Contractor to use and retire some of the energy attributes associated with the purchase of CFE under the contract to satisfy the state RPS requirements of one or more accounts to be specified by the Government, which in turn will reduce the number of RECs to be purchased by the Contractor to satisfy the Government’s state RPS requirements.

18. Page 12, Section C (3)(d)(iii), Transmission Costs is hereby amended to the following language:

• Transmission Costs. Non-UDC transmission costs (Network Integration Transmission Service [NITS]

Charges, Transmission Enhancement Charges [TEC]) associated with each account shall be passed through to the Government at the applicable PJM tariff rate as prescribed in the OATT. Any Auction Revenue Rights (ARRs) associated with the account loads shall be credited back to the Government, based on the Government’s share of the Contractor’s overall load. Both the transmission charges and any credits to the Government shall be shown as separate line items on the monthly invoices. Transmission charges shall be billed according to the following formulae:

Daily NITS Charge = Annual Network Service Peak Load Tag (MW) x Annual Zonal NITS Rate ($/MW-Year) / Number of Days per Year

Daily TEC Charge = Annual Network Service Peak Load Tag (MW) x Annual Zonal TEC Rate ($/MW- Year) / Number of Days per Year

Annual Network Service Peak Load Tag is the transmission tag assigned to each account by the UDC for each calendar year.

Annual Zonal NITS and TEC Rates shall equal those published on PJM’s website.

19. Page 12, Section C (3)(d)(iii), Transmission Congestion &PJM Losses is hereby amended to the following language:

• Transmission Congestion & PJM Losses. Transmission congestion and PJM losses, herein referred to as “Congestion Charges,” associated with each account shall be treated for New-build CFE and Retail Electricity as follows.

1. New-build CFE: The offeror shall specify the PJM delivery point at which the offeror proposes to financially deliver and settle the CFE with the Government. The offeror may specify the generation node(s), a PJM hub (e.g., Western Hub), or the applicable Residual Metered Load Aggregates as the proposed PJM CFE Settlement Point.

Congestion Charges between the PJM CFE Settlement Point and the applicable Residual Metered Load Aggregates shall be passed through to the Government. The congestion charges for energy and load scheduled in the Day-ahead market shall be computed as the difference between Day-ahead LMPs at the respective Residual Metered Load Aggregates and the Day-ahead LMPs at the PJM CFE Settlement Point. The congestion charges for energy and load scheduled in the Real-time market shall be computed as the difference between the Real-time LMPs at the respective Residual Metered Load Aggregates and the Real-time LMPs at the PJM CFE Settlement Point. The Government reserves the right to direct the Contractor to fix congestion charges over a specified time period for a specified level of load, with those costs to be assigned to the applicable accounts on a per-kWh basis.

2. Retail Electricity: Retail Electricity shall be priced at the applicable Real-time Residual

Metered Load Aggregate LMP. Since the Residual Metered Load Aggregate LMPs

PJM CFE 2024 Amendment 0004 RFP SP0604-24-R-0421 Page 6 of 8 include PJM Congestion Costs to the Service Points, no additional Congestion Costs shall be passed through to the Government.

Section H

20. Page 17, Section H (3) Force majeure is hereby amended to incorporate the following language:

• In the event that either of the Parties is delayed in, or prevented from, performing or carrying out its obligations under this Contract by reason of any Force Majeure Event, such Party shall promptly notify the other Party and exercise commercially reasonable efforts to mitigate or remediate the impacts of the Force Majeure Event, and the Party shall be excused from performance hereunder and shall not be liable to the other Party for or on account of any loss, damage, injury or expense resulting from, or arising out of, such delay or prevention; provided, however, that the conditions set forth in Section H are satisfied.

• Excused Performance. Except as otherwise specifically provided in this Contract, neither Party shall be considered in breach of this Contract or liable for any delay or failure to comply with the Contract, if and to the extent that such delay or failure is attributable to the occurrence of a Force Majeure Event;

provided that the Party claiming relief under Section H shall immediately (a) notify the other Party in writing of the existence of the Force Majeure Event, (b) exercise all reasonable efforts necessary to minimize delay caused by such Force Majeure Event, (c) notify the other Party in writing of the cessation or termination of said Force Majeure Event, and (d) resume performance of its obligations hereunder as soon as practicable thereafter. If the Contractor claims relief pursuant to a Force Majeure Event, the obligation of the Government to make payments to the Contractor for the period of time during which the Contractor is unable to perform shall be canceled and will not resume until the Contractor resumes performance of its obligations under this Contract at which time the Government payment obligation will also resume; provided, however that the Government shall not be excused from making any payments due with respect to the energy delivered to the Government prior to the Force Majeure Event performance interruption.

• In no event will any delay or failure of performance caused by Force Majeure Event extend this Contract beyond its stated Term. In the event that the Contractor’s delay or failure of performance attributable to a Force Majeure Event continues for an uninterrupted period of ninety (90) days from its inception (with respect to Force Majeure occurring prior to COD) or three hundred sixty-five (365) days from its inception (with respect to Force Majeure occurring after COD), the Government may, at any time following the end of such period, terminate this Contract in accordance with FAR 52.212-4(l).

Section J

21. Page 37, Section J List of Attachments is hereby amended:

• Attachment I - Installation Data Sheet

Section L

22. Page 68, Section L.5(A) Factor I – Factor Technical Capability/Risk (I)(a)(2) is hereby amended to incorporate the following language:

• Specify the PJM node(s) to which the Contractor’s proposed CFE generating facilities will be connected.

If a proposed CFE generating facility will not be connecting to an existing PJM node, the proposal should provide a list of existing PJM nodes which the offeror expects to be in close geographic and electrical proximity to the proposed CFE generating facility.

23. Page 68, Section L.5(A) Factor I – Technical Capability/Risk (I)(c)(1) is hereby amended to the following language:

• Explain how the offeror will leverage New-build CFE to maximize the share of total annual CFE deliveries occurring during on-peak hours, as defined by PJM.

PJM CFE 2024 Amendment 0004 RFP SP0604-24-R-0421 Page 7 of 8

• Identify any technical, scheduling, and performance risks associated with the proposal, and describe how they will avoid, mitigate, or resolve the identified risks. The proposal should be clear, concise, thorough, and realistic; an shall substantiate proposed production rates and the validity of stated claims.

• An offeror must demonstrate an ability to supply the New-build CFE Net Annual Quantity defined in Section B, Table 1 beginning on the date that all proposed New-build CFE resources are stated within the proposal to be on-line and supplying CFE to the Government. The Government understands that the offeror may target a larger amount of CFE than the New-build CFE Net Annual Quantity defined in Section B, Table 1 in order to ensure that the offeror can meet the minimum CFE delivery requirement (oversizing).

• Each proposal shall specify the PJM CFE Settlement Point as defined in Section A. The offeror may specify the generation node(s), a PJM hub (e.g., Western Hub), or the applicable Residual Metered Load Aggregates as the proposed PJM delivery point for CFE.

• Each proposal shall specify the PJM node(s) to which the offeror’s proposed CFE generating facilities will be connected.

24. Page 71, Section L.5 Volume IV/Factor 4 – Price Proposal (A)(d) is hereby amended to incorporate the PJM Settlement Point.

Section M

25. Page 73-74, Section M.2 Factor I – Technical Capability/Risk is hereby amended to incorporate the following language:

• The Government will use a combined Technical Capability/Risk rating to assess the offeror’s proposed approach to satisfying the Government’s requirements as defined in Sections B and C of the solicitation;

and will be based on a review of the offeror’s Implementation Plan. The delivered CFE shall be no less than the New-build CFE Net Annual Quantity defined in Section B, Table 1, which corresponds to 35% of the estimated total electricity required at each installation. The remaining 65% will be the additional Retail Electricity. The 35% New-build CFE requirement will begin no later than January 1, 2030. The proposal will be evaluated on technical merit and should describe the plan of action and the offeror’s technical approach to include demonstrating how it will implement the actions that will meet the requirement. Offerors will identify any technical, scheduling, and performance risks associated with their proposals, and describe how they will avoid, mitigate, or resolve the identified risks. The proposal should be clear, concise, thorough, and realistic; and shall substantiate proposed production rates and the validity of stated claims. An offeror must demonstrate an ability to supply the New-build CFE Net Annual Quantity defined in Section B, Table 1 beginning on the date that all proposed New-build CFE resources are stated within the proposal to be on-line and supplying CFE to the Government. The Government understands that the offeror may target a larger amount of CFE than the New-build CFE Net Annual Quantity defined in Section B, Table 1 in order to ensure that the offeror can meet the minimum CFE delivery requirement (oversizing). In its evaluation, the Government may assign a higher rating to the proposals which meet the minimum CFE delivery requirement with a smaller amount of oversizing. In the Government’s evaluation, providing significantly more CFE than the New-build CFE Net Annual Quantity defined in Section B, Table 1 will be considered a weakness. Providing less CFE than the New-build CFE Net Annual Quantity defined in Section B, Table 1 will be considered a weakness, and may be a significant weakness, or deficiency.

• Each proposal shall specify the PJM CFE Settlement Point as defined in Section A. The offeror may specify the generation node(s), a PJM hub (e.g., Western Hub), or the applicable Residual Metered Load Aggregates as the proposed PJM delivery point for CFE. Proposals which specify a PJM hub or the applicable Residual Metered Load Aggregates as the proposed PJM CFE settlement Point may be given preference and/or higher rating.

• Each proposal shall specify the PJM node(s) to which the offeror’s proposed CFE generating facilities will be connected. If a proposed CFE generating facility will not be connecting to an existing PJM node, the proposal should provide a list of existing PJM nodes which the offeror expects to be in close

PJM CFE 2024 Amendment 0004 RFP SP0604-24-R-0421 Page 8 of 8 geographic and electrical proximity to the proposed CFE generating facility. In the Government’s evaluation, expected congestion costs between the CFE generation node and the applicable Residual Metered Load Aggregates will be considered as a CFE price evaluation factor. The Government may utilize historical LMPs, Financial Transmission Rights auction clearing prices, and/or its own node-to-zone congestion and loss basis projections in the congestion cost analysis.

• Preference may be given to the offeror whose technical approach demonstrates a better understanding of the requirement, a proven approach and knowledge of CFE implementation, and/or offers an approach that exceeds minimum performance or capability standards.

• Proposals with an implementation plan demonstrating an earlier start date for CFE supply may receive a higher rating.

• Risks will be manifested by the identification of weakness(es) and evaluations will consider the potential for disruption of schedule, degradation of performance, the need for increased Government oversight, or the likelihood of unsuccessful contract performance.

Other Changes

26. The RFP is hereby modified to incorporate the following additional information:

• Requests for Information (Group 4) submitted to the RFP requirements, along with the Government’s response.

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