SP0604-24-R-0421_ PJM_Amd 0004_9.11.2024.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 76

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 76

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.

“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.”

“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)

“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.

“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)

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“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.

“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.

“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.

“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)

“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.”

“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)

SP0604-24-R-0421 Page 4 of 76

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

“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

“Utility Interruption” means 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.

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 Number DEPI DLA Energy Procurement Instruction DLA Defense Logistics Agency DFARS Defense Federal Acquisition Regulation

Supplement 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 Integration Transmission Service OATT Open Access Transmission Tariff PJM PJM Interconnection, LLC PPA Power Purchase Agreement PUC Public Utility Commission REC Renewable Energy Certificate RFP Request for Proposals

SP0604-24-R-0421 Page 5 of 76

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 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.

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

Utility Service Area: BG&E Baltimore Gas and Electric JCP&LJ Jersey Central Power & Light PECO PECO Energy Company

SP0604-24-R-0421 Page 6 of 76

PEPCO Potomac Electric Power Company PPL PPL Electric Utilities Corporation 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 Duquesne Light Company Delmarva Delmarva Power & Light Company ACE Atlantic City Electric PSE&G Public Service Electric and Gas Company The Illuminating Co. The Cleveland Electric Illuminating Company 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 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.

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 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).

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 included under Section B, Table 1, Supplies to be furnished.

e. OTHER MARKET CHARGES.

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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.

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.

Section B, Table 1: Supplies to be furnished:

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

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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

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 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.

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

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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 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.

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.

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. 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.

e. ATTESTATION.

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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.

f. 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:

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 requirements.

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

i. The total quantity (in kWh) supplied during the period of delivery; and

ii. 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

All Attestation Forms shall be sent with the CFE Report 45 days after the end of each CFE 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, as defined in 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.

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

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 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. 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.

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ii. Capacity Costs. The cost to secure capacity to comply with PJM capacity requirements shall be passed through to the Government. The capacity charge 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 (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.

iv. 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

SP0604-24-R-0421 Page 13 of 76

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 CFE delivery 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 include PJM Congestion Costs to the Service Points, no additional Congestion Costs shall be passed through to the Government.

v. Regional Transmission Expansion Planning Process (RTEP). PJM’s RTEP charges 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.

SP0604-24-R-0421 Page 14 of 76

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.

x. Pennsylvania Gross Receipts Tax (GRT): Applicable to all Pennsylvania accounts only. PA GRT shall not be included in the offered priced and shall be billed as a separate line item.

e. SUB-ACCOUNT.

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

SP0604-24-R-0421 Page 15 of 76 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.

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.

SP0604-24-R-0421 Page 16 of 76

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

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

SP0604-24-R-0421 Page 17 of 76 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.

3. Force Majeure.

a. 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.

b. 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.

c. 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).

SP0604-24-R-0421 Page 18 of 76

PART II – CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

FAR/DFARS CLAUSES INCORPORATED BY FULL TEXT

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…