SP0604-24-R-0421_ PJM_Amd 0002.pdf

WOMEN-OWNED SMALL

BUSINESS (WOSB)

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

1. REQUISITION NUMBER PAGE 1 OF

2. CONTRACT NUMBER 3. AWARD/EFFECTIVE

DATE

4. ORDER NUMBER 5. SOLICITATION NUMBER 6. SOLICITATION ISSUE

DATE

7. FOR SOLICITATION

INFORMATION CALL:

a. NAME b. TELEPHONE NUMBER (No collect calls)

8. OFFER DUE DATE/

9. ISSUED BY

13b. RATING

14. METHOD OF SOLICITATION

CODE

15. DELIVER TO 16. ADMINISTERED BY CODE

18a. PAYMENT WILL BE MADE BY CODE17a. CONTRACTOR/

OFFEROR

CODE

FACILITY

CODE

CODE

TELEPHONE NUMBER

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN

OFFER

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK

BELOW IS CHECKED

REQUEST

FOR QUOTE

(RFQ)

INVITATION

FOR BID

(IFB)

REQUEST

FOR

PROPOSAL

(RFP)

SEE ADDENDUM

19.

ITEM NUMBER

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA 26. TOTAL AWARD AMOUNT (For Government Use Only)

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH

AND DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND

ON ANY ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS

SPECIFIED

29. AWARD OF CONTRACT: REFERENCE OFFER

DATED . . YOUR OFFER ON SOLICITATION

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR

30b. NAME AND TITLE OF SIGNER (Type or print) 30c. DATE SIGNED

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

31b. NAME OF CONTRACTING OFFICER (Type or print) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

STANDARD FORM 1449 (REV. 11/2021)

Prescribed by GSA - FAR (48 CFR) 53.212

10. THIS ACQUISITION IS UNRESTRICTED OR

NORTH AMERICAN

INDUSTRY CLASSIFICATION

STANDARD (NAICS):

SIZE STANDARD:

13a. THIS CONTRACT IS A

RATED ORDER UNDER

THE DEFENSE PRIORITIES

AND ALLOCATIONS

SYSTEM - DPAS (15 CFR 700)

SET ASIDE: % FOR:

11. DELIVERY FOR FREE ON

BOARD (FOB) DESTINATION

UNLESS BLOCK IS MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

ARE ARE NOT ATTACHED

ARE ARE NOT ATTACHED

27a. SOLICITATION INCORPORATES BY REFERENCE (FEDERAL ACQUISITION REGULATION) FAR 52.212-1, 52.212-4. FAR 52.212-3

AND 52.212-5 ARE ATTACHED. ADDENDA

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

8(A)

ECONOMICALLY

DISADVANTAGED

WOMEN-OWNED SMALL

BUSINESS (EDWOSB)

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

(SDVOSB)

HUBZONE SMALL

BUSINESS

SMALL BUSINESS

NOTE: OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, AND 30. SP0604-24-5811 73

SP0604-24-R-0421

DLAEnergy-CFE@dla.mil 571-767-8864

SP0604

See Schedule

See Schedule kWh

221118

07/31/2024

LOCAL TIME

11/04/2024

14:30 PM EST

Defense Logistics Agency - Energy Carbon Pollution Free Electricity (CFE) Directorate 8725 John J. Kingman Road, Suite 4828 Fort Belvoir, VA 22060-6222 Purchase Program 8.1

See Schedule

FAE9138

Highlight

FAE9138

Highlight

FAE9138

Highlight

SP0604-24-R-0421 Page 2 of 68

PJM 2024

PART I – THE SCHEDULE

SECTION A – SOLICITATION / CONTRACT FORM

A.1. Definitions and Acronyms

A.1.1 Definitions: For purposes of this contract, the following definitions apply to the contract and its attachments except where the context of a word’s use indicates otherwise:

“24/7 Carbon pollution-free electricity” or “24/7 CFE” means carbon pollution-free electricity procured to match actual electricity consumption on an hourly basis and produced within the same Grid Region where the energy is consumed. (Sec. 603(a) of E.O. 14057)

“Balancing Authority” for this solicitation and any resulting contract means the PJM Regional Transmission Organization.

“Block-rate structure” means an electric rate schedule with a provision for charging a different unit cost for various increasing blocks of demand for energy. A reduced rate may be charged on succeeding blocks.

“Commercial Operation Date” means the date on which the New-build CFE generating asset is accepted by the applicable UDC and has permission to commercially operate.

“Carbon Pollution-Free Electricity” or “CFE” means electrical energy produced from resources that generate no carbon emissions, including marine energy, solar, wind, hydrokinetic (including tidal, wave, current, and thermal), geothermal, hydroelectric, nuclear, renewably sourced hydrogen, and electrical energy generation from fossil resources to the extent there is active capture and storage of carbon dioxide emissions that meets EPA requirements.

“Energy Attribute Certificate” or “EAC” is an instrument that conveys information (attributes) about a unit of energy, including the resource used to create it, and the emissions associated with its production and use. A renewable energy certificate, or REC, is a type of EAC. (Appendix A of E.O. 14057 Implementing Instructions)

“Grid Region” means the area of the grid within which a Balancing Authority maintains balance between electric load and resources. (Appendix A of E.O. 14057 Implementing Instructions)

“Grid-supplied CFE” is CFE delivered as part of default electricity service or the electricity grid mix from a utility or electric service provider (in contrast to New-build CFE, in which the CFE and associated EAC are specified contractually). (Sec. 4.2.4 of E.O. 14057 Implementing Instructions)

“Kilowatt hour” means 1000-watt hours and represents one kilowatt of power expended for one hour of time.

“Locational Marginal Pricing” means the marginal price for energy at the location where the energy is delivered or received and is based on forecasted system conditions and the latest approved real-time security constrained economic dispatch program solution.

SP0604-24-R-0421 Page 3 of 68

“Megawatt” means a unit for measuring power that is equivalent to one million watts (equivalent to one joule per second).

“NEPA” means the National Environmental Policy Act of 1969 (42 U.S.C. § 4321 et seq.) and NEPA’s implementing regulations at 40 C.F.R. part 1500, as they may be amended from time to time.

“New-build CFE” is electricity and associated EACs that are produced by a CFE generation source that is built for fulfillment of the contract below, i.e. a CFE generation source built after contract award. New capacity at an existing resource modified to increase output, such as through an expansion or renovation, would also be considered New-build CFE.

“Open Access Transmission Tariff” is the overall document that governs the operations of PJM. It includes the provisions governing transmission service within the PJM region. The tariff and revisions to it and the other governing documents are subject to acceptance by the Federal Energy Regulatory Commission, the agency that regulates PJM and the other regional grid organizations.

“Point of Delivery” for this solicitation and any resulting contract, the delivery point for each account is defined as an interconnect with the UDC owned or controlled transmission or distribution systems.

“Purchased EACs” are EACs that are procured independently from the agency’s purchases of physical power, often referred to as “unbundled” EACs. (Sec. 4.2.4 of E.O. 14057 Implementing Instructions)

“Renewable Energy Certificate” or “REC” means the technology and environmental (non-energy) attributes that represent proof that 1 Megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource and can be sold separately from the underlying generic electricity with which it is associated. (Sec. VII of M-22-06)

“Retail Electric Choice Markets” or “Deregulated Markets” means electricity markets where customers can choose their electric supplier.

“Retail Electricity” means the default electricity grid mix delivered to the customer that consumes the energy product.

“Service Point” for this solicitation and any resulting contract, are the meter(s) indicated for each account awarded as described in the Attachment I, Installation Data Sheet

A.1.2 Acronyms. For purposes of this contract and its attachments, the following acronyms have the meaning as provided:

ARR Auction Revenue Rights CFE Carbon-Pollution Free Electricity CHP Combined Heat and Power CLIN Contract Line Item DEPI DLA Energy Procurement Instruction DLA Defense Logistics Agency DFARS Defense Federal Acquisition Regulation

Supplement

SP0604-24-R-0421 Page 4 of 68

DLAD Defense Logistics Acquisition Directive DOD U.S. Department of Defense DRP Demand Response Provider EAC Energy Attribute Certificate E.O. Executive Order ESID Electric Service Identifier FAR Federal Acquisition Regulation FFP Firm fixed Price GRT Gross Receipts Tax ISO Independent System Operator kW Kilowatt kWh Kilowatt hour LMP Locational Marginal Price MW Megawatt MWh Megawatt hour NEPA National Environmental Policy Act NITS Network Integrated Transmission Service OATT Open Access Transmission Tariff PJM Pennsylvania-New Jersey-Maryland

Interconnection PPA Power Purchase Agreement PUC Public Utility Commission REC Renewable Energy Certificate RFP Request for Proposals RMR Reliability Must Run RPS Renewable Portfolio Standard RTO Regional Transmission Organization TEC Transmission Enhancement Charge UDC Utility Distribution company

SECTION B – CONTINUATION OF BLOCK 20 OF SF 1449

1. AUTHORITY.

The Government intends to award utilizing the following authorities:

Carbon-Pollution Free Electricity: Contract under 10 U.S.C. § 2922a, Contracts for the provision and operation of energy production facilities on real property under the Secretary’s jurisdiction or on private property and the purchase of energy produced from such facilities.

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 of the contract 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 Power Purchase Agreement.

SP0604-24-R-0421 Page 5 of 68

2. SUPPLIES TO BE FURNISHED.

a. The contract quantities shown below are best estimates based on historical data only of the Government’s requirements for the contract period. The Contractor shall supply and deliver New-build CFE and, any additional Retail Electricity necessary to meet the Government’s full electricity requirement, and any ancillary services required in the STATEMENT OF WORK / SPECIFICATIONS contract text. Contract performance shall be accomplished in accordance with the terms and conditions of this contract.

b. The utility service area(s), public utility commission, and Balancing Authority are as follows:

ISO/RTO: PJM

Balancing Authority: PJM Public Utility Commission: Public Service Commission of the District of Columbia Maryland Public Service Commission State of New Jersey Board of Public Utilities Pennsylvania Public Utility Commission Public Utility Commission of Ohio Illinois Public Utility Commission

Utility Service Area: BG&E Baltimore Gas and Electric ComEd Commonwealth Edison JCP&L Jersey Central Power & Light PECO Philadelphia Electric Power Company PEPCO Potomac Electric Power Company PPL Pennsylvania Power and Light PE Potomac Edison Met-Ed Metropolitan Edison Company Penelec Pennsylvania Electric Company Penn Power Pennsylvania Power Company West Penn Power West Penn Power Company Duquesne Light Delmarva ACE Atlantic City Electric PSE&G Public Service Enterprise Group The Illuminating Co.

DPL Dayton Power & Light

c. CARBON POLLUTION FREE ELECTRICITY (CFE).

The Government is soliciting offers for a 20-year contract for the supply of New-build CFE and associated Environmental 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

SP0604-24-R-0421 Page 6 of 68 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.

NOTE: The Government will not be taking ownership of the facilities.

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 approximately 35 percent of the Government’s Total Annual Electricity Requirement. The minimum CFE quantity must be met no later than the 2030 Annual CFE Compliance Year.

The offered price shall include the cost of energy produced from the CFE resource(s), and associated EACs.

d. RETAIL ELECTRICITY.

Retail Electricity from conventional energy resources to be supplied and delivered through the PJM RTO market to each installation to supplement the New- build CFE energy deliveries and fulfill the energy requirements at these locations. A summary of the Government’s estimated conventional energy requirements is as included under Section B, Table 1, Supplies to be furnished.

e. OTHER MARKET CHARGES.

The charges reference 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.

f. TRANSACTION FEE.

The Transaction Fee shall be fixed and identical for each kWh of CFE and Retail Electricity supplied under this contract. Payment of this fee shall compensate the Contractor for all costs associated with operating and maintaining a license as a Retail Electricity supplier and/or a Load Serving Entity, including the cost of complying with the state PUC, PJM, and UDC collateral requirements.

SP0604-24-R-0421 Page 7 of 68

Section B, Table 1: Supplies to be furnished:

NOTE: Specifics for each installation are provided in Attachment I, Installation Data Sheet. The information includes: (1) Location, (2) Local Electric Utility, (3) Current Tariff Rate, (4) Utility Account Number; (5) Monthly Consumption and Demand Data, (6) CLIN Structure.

NOTE: The Government intends to award one or more contracts to responsible Offeror(s) in accordance with the evaluation process set forth below and otherwise established within this solicitation.

NOTE: For each group, the corresponding CLINs for both New-build CFE and Retail Electricity will be awarded together. For example, CLIN 0001 and CLIN 0002 will be awarded as a group. Each group will be evaluated independently without consideration of offers for the other groups. The evaluation for each group, will evaluate each offeror’s prices inclusive of New-build CFE produced and Retail Electricity price.

3. ADDITIONAL INSTALLATION INFORMATION.

For additional information, reference Attachment II – Installation Information.

SECTION C – STATEMENT OF WORK/SPECIFICATIONS

Net Annual Qty Net Annual Qty Percentage

(kWh) (kWh) (Purchased

CFE)

FFP LMP

99th Army Reserve (PA) 52 11,616,464 4,065,762 7,550,702 2.1%

Bettis 2 4,712,486 1,649,370 3,063,116 0.8%

Carlisle Barracks 2 503,768 176,319 327,449 0.1%

DLA Susquehanna 2 32,119,899 11,241,965 20,877,934 5.7%

Tobyhanna 1 66,787,000 23,375,450 43,411,550 11.8%

99th Army Reserve PA - Duquene 5 1,334,548 467,092 867,456 0.2%

99th Army Reserve PA - UGI 2 613,988 214,896 399,092 0.1%

JBMDL 155 45,944,065 16,080,423 29,863,642 8.1%

99th Army Reserve (NJ) 8 2,272,697 795,444 1,477,253 0.4%

PPPL 2 19,810,654 6,933,729 12,876,925 3.5%

Joint Base Henderson-Hall 2 32,741,570 11,459,550 21,282,021 5.8%

US National Arboretum 9 560,363 196,127 364,236 0.1%

Marine Barracks Washington 3 6,739,455 2,358,809 4,380,646 1.2%

Naval Research Lab (DC) 1 108,424,768 37,948,669 70,476,099 19.2%

National Institutes of Health 4 56,184,764 19,664,667 36,520,097 10.0%

Fort Detrick 5 172,639,929 60,423,975 112,215,954 30.6%

Fort Detrick - Forrest Glen 3 1,100,870 385,305 715,566 0.2% 0 564,107,288 100%

VA MD Healthcare 1 15,806,278 5,532,197 10,274,081 1.9%

Loch Raven 6 2,841,148 994,402 1,846,746 0.3%

Naval Research Lab (MD) 1 9,365,256 3,277,840 6,087,416 1.1%

CSSG 1 7,884,140 2,759,449 5,124,691 0.9%

Army Corps of Engineers 22 116,911,864 40,919,152 75,992,712 13.7%

Maryland Procurement Office 25 607,741,549 212,709,542 395,032,007 71.5%

Fort Meade 303 89,378,236 31,282,383 58,095,853 10.5%

99th Army Reserve (MD) 11 406,985 142,445 264,540 0.0% 0 850,335,456 100%

DLA Columbus 1 52,282,852 18,298,998 33,983,854 6% Wright-Patterson Air Force Base 5 771,434,819 270,002,187 501,432,632 94%

0 823,717,671 100%

TOTAL 634 2,238,160,416 646,727,874 1,201,066,052

Retail Electrcity

CLIN #

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%)

Group 2 CLIN 0003 CLIN 0004

Group 3 CLIN 0005 CLIN 0006

SP0604-24-R-0421 Page 8 of 68

1. GENERAL PERFORMANCE REQUIREMENTS.

a. 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 35% of the 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.

b. All quantities ordered by the Government shall be considered firm and guaranteed for delivery by the Contractor to the Delivery Point, and for scheduling and coordinating, for ultimate delivery to the Service Point for each account. Charges incurred as a result of the Contractor's failure to abide by the terms of the applicable Retail Access rules and/or the UDC Service Agreement shall be the responsibility of the Contractor. With the exception of any and all transmission and distribution related charges payable by the Government to the UDC under the applicable tariff for each account (unless said charges are the result of the Contractor's failure to perform in accordance with the contract), the Contractor is responsible for all costs associated with deliveries to the Point of Delivery and the scheduling and coordination for delivery of electricity to the Service Point for each account under the contract. The Contractor shall be liable for any and all penalties and/or additional costs assessed to the installations for the non-delivery of the firm requirements in accordance with paragraphs (f) and (m) of FAR 52.212-4.

2. CFE PERFORMANCE REQUIREMENTS.

a. CFE SUPPLY.

New-build CFE resources shall deliver CFE to the same Grid Region (PJM) of installation consumption. During each CFE Compliance Year, the Contractor must supply a quantity of CFE no less than the New Build CFE Net Annual Quantity defined in Section B, Table 1. CFE shall be supplied to the Government within the same hour in which it is generated. The Contractor shall not supply, and the Government will not purchase, any quantity of CFE exceeding the Government’s total electricity requirement during each hour.

If the amount of CFE Production is less than the 35% CFE requirement, the Contractor shall provide EACs for no longer than 3 months at the contract rate to make up for the shortfall.

After the 3 months, if the generating asset is not able to produce the 35% CFE requirement, the Government may Terminate for Cause.

b. NATIONAL ENVIRONMENTAL POLICY ACT.

Pursuant to the Council on Environmental Quality regulations (40 Code of Federal Regulations [CFR] Parts 1500-1508), implementing the National Environmental Policy Act (NEPA) and DLA NEPA regulations (DLAR 1000.22, Environmental Considerations in Defense Logistics Agency Actions), requires compliance with all NEPA requirements. The Contractor is responsible for all costs associated with NEPA compliance and shall not be billed as a separate line item.

SP0604-24-R-0421 Page 9 of 68

Termination Due to Negative NEPA Determination. If the findings of the NEPA analysis reaches a negative determination, including but not limited to a finding of significant impact, that could prevent the Contractor from proceeding with the Contract in compliance with NEPA (“Negative NEPA Outcome”), either the Government or the Contractor may terminate this Contract for convenience, and the terminating Party shall not be responsible for any damages, or any other financial liabilities owed to the other party arising from a result of this termination.

c. CFE COMPLIANCE YEAR.

The Annual CFE Compliance Year is January 1 through December 31.

d. ENVIRONMENTAL ATTRIBUTES.

The Government shall own and retain the rights to the environmental attributes associated with the purchase of CFE under the contract. The Contractor shall guarantee that the environmental 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.

e. ATTESTATION.

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 Environmental Attributes.

f. All submitted Attestation Forms shall affirm that the environmental attributes associated with the CFE purchased:

i. Will not be separately sold, marketed, or otherwise represented as CFE;

ii. Will not be used to meet any federal, state, or local renewable energy mandate;

iii. Were transferred to the Government or permanently retired on the Government’s behalf; and

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

v. Attestation Forms shall also clearly state the following information about each qualifying CFE generation resource:

vi. The total quantity (in kWh) supplied during the period of delivery

vii. For each associated generating facility:

1. Name

2. Address

3. ID Number

4. eGRID subregion where the facility is located

5. Point of contact and contact information

6. Fuel type

7. Capacity

8. Date first operational

9. NOx emissions

10. Period of delivery

SP0604-24-R-0421 Page 10 of 68

viii. All Attestation Forms shall be sent with the CFE Report 45 days after the end of each compliance year.

g. CFE REPORT.

The Contractor shall provide to the Contracting Officer CFE Reports documenting the quantity of CFE supplied to the Government in accordance with the CFE Compliance Year, reference Section C 2 (c) of this solicitation.

i. Each CFE Report shall affirm and clearly state the following information for each installation supplied:

1. The total quantity of electricity (in kWh) supplied to each installation during the reporting period;

2. The total quantity of New-build CFE (in kWh) supplied to each installation during the reporting period;

3. 24/7 CFE supply: the % CFE match that was supplied that matched the total load in each hour.

ii. The CFE Report is due 45 days after the end of each compliance year.

3. PRICING.

a. FIRM FIXED PRICE NEW-BUILD CFE.

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

b. RETAIL ELECTRICITY. 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 PJM Load Zone LMP. Prior to the Commercial Operation Date of any New-build CFE resource, all electricity supply shall be priced at the applicable Real-Time PJM Load Zone LMP.

c. TRANSACTION FEE. The Government shall pay the Contractor the product of the fixed fee multiplied by the account’s total energy consumption (metered volume) in that month. The Transaction Fee shall be fixed and identical for each kWh supplied under this contract. The Transaction Fee shall not include any charges identified in Section B (c) New-build CFE, (d) Retail Electricity, or (e) Other Market Charges of this clause.

d. OTHER MARKET CHARGES.

The following charges identified below 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. These costs may be purchased by the Government through a method mutually agreed to and shall be invoiced in accordance Attachment IX Invoice and Payment Instructions:

i. Renewable Energy Credits. Contractor costs to comply with the state RPSs associated with each of the accounts shall be passed through to the government. The Government

SP0604-24-R-0421 Page 11 of 68 reserves the right to direct the Contractor to purchase RECs with those costs to be assigned to the applicable accounts and the RECs purchased by the Contractor to be used to satisfy the state RPS requirements associated with the applicable accounts. The costs associated with state RPS compliance are to be expressed as a per-kWh charge, applicable to the account and distributed over the calendar year, or the PJM planning year (June through May), as applicable based on state RPS regulations, in proportion to energy usage by the account. Pursuant to FAR 52.212-5(d), the Government has the right to audit the price quotes or other information submitted by the Contractor’s REC suppliers in order to verify price reasonableness and best value.

ii. Capacity Costs. The cost to secure capacity to comply with PJM capacity requirements shall be passed through to the Government. The price of capacity charged to the Government each billing period shall not exceed the following formulas:

Daily Capacity Charge ($) = Annual PLC Tag (MW) x Final Zonal RPM Scaling Factor x Forecast Pool Requirement x Daily Zonal Capacity Scaling Factor x Final Zonal Capacity Price ($/MW-Day)

Annual PLC Tag is the capacity tag assigned to each account by the UDC for each PJM delivery year (June 1st through May 31st).

The Final Zonal RPM Scaling Factor, Forecast Pool Requirement, Daily Zonal Capacity Scaling Factors, and Final Zonal Capacity Prices shall equal those published on PJM’s website.

The Government reserves the right to direct the Contractor to purchase capacity with those costs to be assigned to the applicable accounts on the basis of their respective PLCs.

iii. Transmission Costs. Non-UDC transmission costs 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 charge 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 formula:

Daily Transmission Charge = Daily Peak Load Contribution (kW) x Annual Zonal Network Integration Transmission Service Rate / Number of Days per Year

iv. Transmission Congestion & PJM Losses. Transmission congestion and PJM losses, herein referred to as “Congestion Charges,” associated with each account shall be passed through to the Government. The congestion charges for energy and load scheduled Day- ahead, shall be computed as the difference between Day-ahead LMPs at the PJM West Hub and the Day-ahead LMPs at the relevant delivery zone. The congestion charges for energy and load scheduled Real-time, shall be computed as the difference between the Real-time LMPs at the PJM West hub and the Real-time LMPs at

SP0604-24-R-0421 Page 12 of 68 the relevant delivery zone. The Government reserves the right to direct the Contractor to fix congestion costs 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.

v. Regional Transmission Expansion Planning Process (RTEP). PJM’s RTEP shall be treated as direct pass-through to the Government.

vi. Reliability Must Run (RMR). Any RMR charges shall be treated as a direct pass-through to the Government.

vii. Auction Revenue Rights (ARRs). Any 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 charge and any credits to the Government shall be shown as separate line items on the monthly invoices. The monthly invoices shall provide documentation of the derivation of the ARR credits. The timeframe for applying Auction Revenue Rights (ARR) credits is 60 days maximum.

viii. PJM Marginal Loss Over-Collection Credit.

a. Credits shall be treated as a separate line item on each invoice.

b. Over collection of Marginal losses shall be passed through to the Government.

c. Offerors have the option to use the load ratio share or hourly loss duration factors to compute the PJM Marginal Loss Over Collection Credits.

d. Offerors shall specify the method chosen to compute the PJM Marginal Loss

Over Collection Credits, in their offer.

e. Any PJM losses over-collection credits due to the installation after the expiration of the contract terms shall be reimbursed to the APPLICABLE INSTALLATION FINANCE OFFICE (TO BE PROVIDED AT CONTRACT AWARD) by check. Technical Data Submissions shall include information describing the supplier’s refund process for PJM losses over-collection credits to be used in the event of contract award. Suppliers shall also provide examples showing the calculation methodology and invoicing procedures.

ix. Ancillary Services Costs. The cost to secure ancillary services to comply with PJM requirements shall be passed through to the Government. The price of ancillary service charges to the Government shall not exceed PJM’s charges or the market clearing price from the relevant PJM-administered market for the relevant time period and zone in which the account is located. Ancillary service charges passed through to the Government are those charges for: (a) scheduling, system control and dispatch (PJM OATT); (b) reactive supply and voltage control from generation services (PJM OATT); (c) regulation and frequency response service (PJM Operating Agreement); (d) balancing charges in operating reserves (PJM Operating Agreement); (e) operating reserve, supplemental reserve (PJM Operating Agreement); (f) operating reserve, synchronized reserve service (PJM Operating Agreement); and (g) all other Ancillary Service Charges incurred to supply the Government account.

e. SUB-ACCOUNT.

The Contractor shall establish a PJM Sub-account for each UDC zone to facilitate the

SP0604-24-R-0421 Page 13 of 68

Government’s assignment of pass-through charges to each account served by the applicable Sub-account. All such charges shall be shown on the ISO Billing Statement Line Items, Attachment VI – PJM Billing Statement Line Items.

An up-to-date version of these charges is available at:

https://www.pjm.com/-/media/markets-ops/settlements/msrs/finalized-billing-statement-line-items-and-line-item-mapping.ashx

The establishment of one or more PJM Sub-accounts will be used to facilitate the assignment of pass-through charges to the Government for the accounts served under PJM Sub-account.

f. INDICES.

In the event the PJM LMP, or any other index upon which the energy prices for this contract are determined, ceases to publish or is substantially altered (including, for example, the elimination of price caps) the parties shall agree upon a substitute index. If the parties fail to agree on an appropriate substitute index, the matter shall be resolved in accordance with paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS clause of the contract.

4. CONTRACT PRICE CONVERSION.

a. (At any time during contract performance, the Government and the Contractor can mutually agree to convert any LMP-based contract line items quantity to a firm-fixed price for a specific delivery month(s) or for the remainder of the delivery period, based on the historical usage identified in the Installation Data Sheets. Either party can initiate such a proposal for a specific delivery month(s) or for the remaining contract period. The proposal to convert must identify the contract line item(s) for which conversion is proposed and specify a period for acceptance in

LOCAL TIME, FORT BELVOIR, VIRGINIA.

b. Price negotiations may be held. If the Government accepts a proposal, the contract will be modified to reflect the revised price(s). Acceptance by the Government of the Contractor’s price proposal within the time limit allotted by the Contractor for acceptance of the price proposal shall be binding.

5. METERING AND METER READING SERVICES.

Metering and meter reading services will be provided by the incumbent UDC for each account.

Contractor shall provide secure and remotely accessible monitoring of the New-build CFE generation asset. Upon request, such information should be available at any time during the Delivery Period.

6. ORDERING.

Except as this contract otherwise provides, the Government shall order from the Contractor all the supplies or services specified in the Schedule that are required to be purchased by the Government activity or activities specified in the Schedule. See Section F for Ordering Procedures. The Government is not required to purchase from the Contractor, any requirements in excess of any limit on total orders under this contract.

https://www.pjm.com/-/media/markets-ops/settlements/msrs/finalized-billing-statement-line-items-and-line-item-mapping.ashx https://www.pjm.com/-/media/markets-ops/settlements/msrs/finalized-billing-statement-line-items-and-line-item-mapping.ashx

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7. SPECIFICATIONS.

The electricity provided under this contract shall conform to the tariff of the transmitting and/or distributing utility at the delivery point(s) specified in the Schedule.

8. ADDING FUTURE ACCOUNTS.

It is possible that additional accounts not included in the solicitation may be added to the resultant contract(s). In that event, the Government will provide the Contractor with the account’s total electricity requirement (if available) and the two parties shall enter good faith negotiations to determine a price. A bilateral modification will be executed adding the line item on the Standard Form 30, Amendment of Solicitation/Modification of Award.

9. MANAGEMENT CAPABILITY

Offeror shall provide documentation describing the company's management capabilities to perform the work described in this solicitation. This includes personnel assigned to work this solicitation/contract, contact information, description of customer service efforts in resolving issues, such as billing and enrolling accounts, etc. along with a Contingency plan in the absence of personnel assigned to the solicitation/contract.

SECTION D – PACKAGING AND MARKING

Not Applicable.

SECTION E – INSPECTION AND ACCEPTANCE

The offeror shall comply with FAR 52.212-4(a), Contract Terms and Conditions – Commercial Products and Commercial Services, Inspection/Acceptance.

SECTION F – DELIVERIES OR PERFORMANCE

1. DELIVERY TERM.

The delivery term will begin on the contract award date and ends 20 years after the execution of the contract.

2. ORDERING PROCEDURES.

Delivery or performance shall be made only as authorized by orders. For the purposes of this contract, and in accordance with FAR 52.216-18(d), the instantaneous load at the Service Point, as described in the individual Installation Data Sheet, shall constitute an order for electricity to be furnished under this contract. Except as this contract may otherwise provide, if the Government's requirements do not result in orders in the quantities described as "estimated" or "maximum" in the Schedule, that fact shall not constitute the basis for an equitable price adjustment.

SECTION G – CONTRACT ADMINISTRATION DATA

Reference Attachment IX – Invoice and Payment Instruction for detailed requirements.

SECTION H – SPECIAL CONTRACT REQUIREMENTS

SP0604-24-R-0421 Page 15 of 68

1. NOTIFICATION OF TARIFF/RATE CHANGES.

The Contractor shall use commercially reasonable efforts to provide the Contracting Officer with written notice received by the Contractor of any relevant changes to the transportation tariff/rate or the scheduling of a tariff/rate hearing that would reasonably be expected to have impact on the installations within a commercially reasonable time frame. Failure of the Contractor to comply with this contract text shall not be grounds for termination for cause.

2. ELECTRICITY REGULATORY CHANGES.

a. The contract price includes all applicable independent system operator/regional transmission organization (ISO/RTO/PUC) charges expected to be in effect and applicable to this contract at Government price acceptance.

b. "After-imposed (ISO/RTO/PUC) charges," as used in this contract text, means any new or modified regulatory (ISO/RTO/PUC) charges not in effect or not applicable to transactions under this contract on the date the Government accepts pricing, but which are now in effect or applicable as the result of legislative, judicial, or administrative action, with the result that the Contractor is now required to pay or bear the charges. The contract price shall be increased by the amount of any after-imposed (ISO/RTO/PUC) charge (with no markup), provided the Contractor warrants in writing within a commercially reasonable time frame of the regulation change, that no amount for such after-imposed (ISO/RTO/PUC) charge was included in the contract price, as a contingency reserve or otherwise. The Contractor shall provide such evidence as the Government may require in support of a request for adjustment resulting from any after-imposed (ISO/RTO/PUC) charge.

c. "After-relieved (ISO/RTO/PUC) charges," as used in this contract text, means any amount of regulatory (ISO/RTO/PUC) charges that would otherwise have been payable on the transactions or property covered by this contract but which as the result of legislative, judicial or administrative action taking effect after the contract date the Contractor is not required to pay or bear, or for which the Contractor obtains a refund or drawback. The contract price shall be decreased by the amount of any after-relieved (ISO/RTO/PUC) charges.

d. “Modified” means an unforeseeable change in law (or equivalent regulatory restructure) which occurs after contract award and results in increased regulatory (ISO/RTO/PUC) charges, the effects of which could not have reasonably been anticipated by the Contractor prior to award.

e. The Contractor shall notify the contracting officer of any after-imposed or after-relieved (ISO/RTO/PUC) charge within 60 days of the change and if seeking a price increase, simultaneously submit a proper claim for equitable adjustment. Price adjustments shall be accomplished via written modification to the contract.

NOTE: ISO/RTO/PUC is defined to include the applicable Independent System Operator, Regional Transmission Operator, Public Utility Commission, or any Governmental or regulatory entity with the authority to impose charges to which an account supplied under this contract is subject.

PART II – CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

FAR/DFARS CLAUSES INCORPORATED BY FULL TEXT

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52.212-1 Instructions to Offerors—Commercial Products and Commercial Services.

Instructions to Offerors—Commercial Products and Commercial Services (Sep 2023)

(a) North American Industry Classification System (NAICS) code and small business size standard. The NAICS code(s) and small business size standard(s) for this acquisition appear elsewhere in the solicitation. However, the small business size standard for a concern that submits an offer, other than on a construction or service acquisition, but proposes to furnish an end item that it did not itself manufacture, process, or produce is 500 employees, or 150 employees for information technology value-added resellers under NAICS code 541519, if the acquisition—

(1) (1)Is set aside for small business and has a value above the simplified acquisition threshold;

(2) (2)Uses the HUBZone price evaluation preference regardless of dollar value, unless the offeror waives the price evaluation preference; or

(3) (3)Is an 8(a), HUBZone, service-disabled veteran-owned, economically disadvantaged women-owned, or women-owned small business set-aside or sole-source award regardless of dollar value.

(b) Submission of offers. Submit signed and dated offers to the office specified in this solicitation at or before the exact time specified in this solicitation. Offers may be submitted on the SF 1449, letterhead stationery, or as otherwise specified in the solicitation. As a minimum, offers must show—

(1) The solicitation number;

(2) The time specified in the solicitation for receipt of offers;

(3) The name, address, and telephone number of the offeror;

(4) A technical description of the items being offered in sufficient detail to evaluate compliance with the requirements in the solicitation. This may include product literature, or other documents, if necessary;

(5) Terms of any express warranty;

(6) Price and any discount terms;

(7) "Remit to" address, if different than mailing address;

(8) A completed copy of the representations and certifications at Federal Acquisition Regulation

(FAR) 52.212-3 (see FAR 52.212-3(b) for those representations and certifications that the offeror shall complete electronically);

(9) Acknowledgment of Solicitation Amendments;

(10)Past performance information, when included as an evaluation factor, to include recent and relevant contracts for the same or similar items and other references (including contract numbers, points of contact with telephone numbers and other relevant information); and

(11)If the offer is not submitted on the SF 1449, include a statement specifying the extent of agreement with all terms, conditions, and provisions included in the solicitation. Offers that fail to furnish required representations or information, or reject the terms and conditions of the solicitation may be excluded from consideration.

(a) Period for acceptance of offers. The offeror agrees to hold the prices in its offer firm for 30 calendar days from the date specified for receipt of offers, unless another time period is specified in an addendum to the solicitation.

https://www.gsa.gov/forms-library/solicitationcontractorder-commercial-items https://www.acquisition.gov/far/part-52#FAR_52_212_3 https://www.acquisition.gov/far/part-52#FAR_52_212_3 https://www.gsa.gov/forms-library/solicitationcontractorder-commercial-items

SP0604-24-R-0421 Page 17 of 68

(b) Product samples. When required by the solicitation, product samples shall be submitted at or prior to the time specified for receipt of offers. Unless otherwise specified in this solicitation, these samples shall be submitted at no expense to the Government, and returned at the sender’s request and expense, unless they are destroyed during preaward testing.

(c) Multiple offers. Offerors are encouraged to submit multiple offers presenting alternative terms and conditions, including alternative line items (provided that the alternative line items are consistent with FAR subpart 4.10), or alternative commercial products or commercial services for satisfying the requirements of this solicitation. Each offer submitted will be evaluated separately.

(d) Late submissions, modifications, revisions, and withdrawals of offers.

(1) Offerors are responsible for submitting offers, and any modifications, revisions, or withdrawals, so as to reach the Government office designated in the solicitation by the time specified in the solicitation. If no time is specified in the solicitation, the time for receipt is 2:30 p.m., local time, for the designated Government office on the date that offers or revisions are due.

(2) (i) Any offer, modification, revision, or withdrawal of an offer received at the Government office designated in the solicitation after the exact time specified for receipt of offers is "late" and will not be considered unless it is received before award is made, the Contracting Officer determines that accepting the late offer would not unduly delay the acquisition; and-

(A) If it was transmitted through an electronic commerce method authorized by the solicitation, it was received at the initial point of entry to the Government infrastructure not later than 5:00 p.m. one working day prior to the date specified for receipt of offers; or

(B) There is acceptable evidence to establish that it was received at the Government installation designated for receipt of offers and was under the Government’s control prior to the time set for receipt of offers; or

(C) If this solicitation is a request for proposals, it was the only proposal received.

(ii) However, a late modification of an otherwise successful offer, that makes its terms more favorable to the Government, will be considered at any time it is received and may be accepted.

(3) Acceptable evidence to establish the time of receipt at the Government installation includes the time/date stamp of that installation on the offer wrapper, other documentary evidence of receipt maintained by the installation, or oral testimony or statements of Government personnel.

(4) If an emergency or unanticipated event interrupts normal Government processes so that offers cannot be received at the Government office designated for receipt of offers by the exact time specified in the solicitation, and urgent Government requirements preclude amendment of the solicitation or other notice of an extension of the closing date, the time specified for receipt of offers will be deemed to be extended to the same time of day specified in the solicitation on the first work day on which normal Government processes resume.

https://www.acquisition.gov/far/part-4#FAR_Subpart_4_10

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(5) Offers may be withdrawn by written notice received at any time before the exact time set for receipt of offers. Oral offers in response to oral solicitations may be withdrawn orally. If the solicitation authorizes facsimile offers, offers may be withdrawn via facsimile received at any time before the exact time set for receipt of offers, subject to the conditions specified in the solicitation concerning facsimile offers. An offer may be withdrawn in person by an offeror or its authorized representative if, before the exact time set for receipt of offers, the identity of the person requesting withdrawal is established and the person signs a receipt for the offer.

(g) Contract award (not applicable to Invitation for Bids). The Government intends to evaluate offers and award a contract without discussions with offerors. Therefore, the offeror’s initial offer should contain the offeror’s best terms from a price and technical standpoint. However, the Government reserves the right to conduct discussions if later determined by the Contracting Officer to be necessary. The Government may reject any or all offers if such action is in the public interest; accept other than the lowest offer; and waive informalities and minor irregularities in offers received.

(h) Multiple awards. The Government may accept any item or group of items of an offer, unless the offeror qualifies the offer by specific limitations. Unless otherwise provided in the Schedule, offers may not be submitted for quantities less than those specified. The Government reserves the right to make an award on any item for a quantity less than the quantity offered, at the unit prices offered, unless the offeror specifies otherwise in the offer.

(i) Availability of requirements documents cited in the solicitation.

(1) (i) The GSA Index of Federal Specifications, Standards and Commercial Item Descriptions, FPMR Part 101–29, and copies of Federal specifications, standards, and product descriptions can be downloaded from the ASSIST website at https://assist.dla.mil.

(ii) If the General Services Administration, Department of Agriculture, or Department of Veterans Affairs issued this solicitation, a copy of specifications, standards, and commercial item descriptions cited in this solicitation may be obtained from the address in paragraph (i)(1)(i) of this provision.

(1) Most unclassified Defense specifications and standards may be downloaded from the ASSIST website at https://assist.dla.mil.

(2) Defense documents not available from the ASSIST website may be requested from the Defense Standardization Program Office by—

(i) Using the ASSIST feedback module ( https://assist.dla.mil/feedback); or

(ii) Contacting the Defense Standardization Program Office by telephone at 571–767– 6688 or email at assisthelp@dla.mil.

(4) Nongovernment (voluntary) standards must be obtained from the organization responsible for their preparation, publication, or maintenance.

(j) Unique entity identifier.(Applies to all offers that exceed the micro-purchase threshold, and offers at or below the micro-purchase threshold if the solicitation requires the Contractor to https://assist.dla.mil/ https://assist.dla.mil/ https://assist.dla.mil/feedback mailto:assisthelp@dla.mil

SP0604-24-R-0421 Page 19 of 68 be registered in the System for Award Management (SAM).) The Offeror shall enter, in the block with its name and address on the cover page of its offer, the annotation "Unique Entity Identifier" followed by the unique entity…