Attachment V DLA Energy Special Provisions SPE600-R-12-0407.pdf

Attachment V - DLA Energy Special Contract Provisions SPE600-12-R-0407

SECTION B – SUPPLIES TO BE FURNISHED

B1.08 SUPPLIES TO BE FURNISHED (ELECTRICITY) (DLA ENERGY JAN 2012)

(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 electricity and any ancillary services required in the STATEMENT OF WORK/SPECIFICATIONS (ELECTRICITY) contract provision. Contract performance shall be accomplished in accordance with the terms and conditions of this contract.

(b) As used throughout this solicitation/contract, kW means kilowatt; kWh means kilowatt-hour; and UDC means Utility Distribution Company. Below are the acronyms and full names of each utility service area, public utility commission, the applicable NERC region, and those NERC Regions that border the applicable NERC Region.

Applicable NERC Region: PJM

Utility Service Region: JCP&L Jersey Central Power and Light PEPCO Potomac Electric Power Company BG&E Baltimore Gas and Electric FES First Energy DBA Potomac Edison AEP Ohio American Electric Power Ohio PP&L Pennsylvania Power and Light DQE Duquesne Light

ComEd ComEd

(c) The Government is soliciting offers for supply and transmission of electricity and ancillary services for the following locations:

EBS

Line Item Number

DLA Line Item

Number

Location / Installation Name Number of Accounts

Spreadsheet Name(s)

0001 1705 Argonne National Laboratory 1 0001 Argonne National Laboratory.xlsx

0002 2403 Army Corps of Engineers 4 0002 Army Corps of Engineers.xlsx 0003 2450 Bettis Atomic Power Lab 2 0003 Bettis Atomic Power Lab.xlsx 0004 1105 Building 6000, Bolling AFB 1 0004 DC Building 6000, Bolling AFB.xlsx 0005 4200 Carlisle Barracks 2 0005 Carlisle Barracks.xlsx 0006 2497 CSSG 1 0006 CSSG.xlsx 0007 1120 DC Naval Research Lab 1 0007 DC Naval Research Lab.xlsx 0008 4201 Defense Distribution Depot New Cumberland 3 0008 DDD-New Cumberland.xlsx 0009 3902 DLA Columbus 1 0009 DLA Columbus.xlsx 0010 2430 Fort Detrick 3 0010 Fort Detrick.xlsx 0011 1110 Fort McNair 2 0011 Fort McNair.xls 0012 2440 Fort Meade 2 0012 Fort Meade.xls 0013 3405 JB McGuire-Dix-Lakehurst (MDL) 1 0013 JB McGuire-Dix-Lakehurst.xlsx 0014 2496 Johns Hopkins Applied Physics Lab 1 0014 Johns Hopkins Applied Physics

Lab.xlxs 0015 1100 Marine Barracks 3 0015 Marine Barracks.xlsx 0016 2495 Maryland Procurement Office 5 0016 Maryland Procurement Office.xlsx 0017 2485 MD Naval Research Laboratory 1 0017 MD Naval Research Lab.xlsx 0018 2404 National Agriculture Library 1 0018 National Agricultural Library.xlsx 0019 2410 National Institutes of Health 6 0019 National Institute of Health.xlsx 0020 2406 Site 6910 1 0020 Site 6910 Installation Data Sheet.xlsx 0021 4220 Tobyhanna Army Depot 1 0021 Tobyhanna Army Depot.xlxs 0022 2475 VA Maryland Health Care System 1 0022 VA Maryland Health Care

System.xlsx 0023 2425 Forest Glen 3 0023 Forest Glen.xlsx 0024 1115 Walter Reed 1 0024 Walter Reed.xlsx

d) The Government is soliciting offers for a 24-month delivery period (from meter read date occurring in December 2012 to the meter read date occurring in December 2014) for the following line items:

0002 ARMY CORPS OF ENGINEERS; 0003 BETTIS ATOMIC POWER LAB, 0004 BUILDING 6000, BOLLING AFB; 0006 CSSG ; 0007 DC NAVAL RESEARCH LAB; 0009 DLA COLUMBUS; 0010 FORT DETRICK; 0011 FORT MCNAIR; 0012 FORT MEADE; 0013 JB MCGUIRE-DIX-LAKEHURST (MDL); 0014 JOHNS HOPKINS APPLIED PHYSICS LAB; 0015 MARINE BARRACKS; 0017 MD NAVAL RESEARCH LABORATORY; 0018 NATIONAL AGRICULTURE LIBRARY; 0019 NATIONAL INSTITUTES OF HEALTH; 0020 SITE 6910; 0022 VA MARYLAND HEALTH CARE SYSTEM; 0023 FOREST

GLEN; 0024 WALTER REED.

FOR LINE ITEM 0016, MARYLAND PROCUREMENT OFFICE ACCOUNTS ONLY: 21-month delivery period (from meter read date occurring in December 2012 through the meter read date occurring in September 2013).

FOR LINE ITEMS 0001 ARGONNE NATIONAL LABORATORY, 0005 CARLISLE BARRACKS, 0008 DEFENSE DISTRIBUTION DEPOT NEW CUMBERLAND, and 0021 TOBYHANNA ARMY DEPOT ACCOUNTS ONLY: 23-month delivery period (from meter read date occurring in January 2013 through the meter read date occurring in December 2014).

Specifics for each line item are provided with each individual Installation Data Sheet. The information includes: (1) Line Item Number,

(2) Location, (3) Local Electric Utility, (4) Current Tariff Rate, (5) Utility Account Number; (6) Contract Performance Period, (7) Monthly Consumption and Demand Data; and (8) Interval Data.

(e) The Government is soliciting offers for Firm Fixed Price with Requirements Type basis for electricity. Unless otherwise stated in this solicitation, Firm Fixed Prices shall include capacity, transmission, ancillary services, losses and independent system operator/regional transmission organization fees (all retail supply costs) including Reliability Must Run (RMR) to the point of receipt as specified in the solicitation.

f) Offerors may submit prices on all, some or none of the line items contained in the solicitation and may do so on a stand-alone basis and/or as one or more combinations of all-or-none offers (see Attachment III). If an offeror chooses to submit more than one all-or-none offer, they may do so by submitting a separate Attachment III for each.

NOTE: For purposes of this clause, the term “line items” is defined as installations.

(g) The Government is soliciting unit prices consistent with and reflecting the structure of the applicable utility tariffs. The following symbols have been established for the applicable line items:

(s) Summer (ns) Non-Summer

(sp) Summer Peak (nsp) Non-Summer Peak

(sf) Summer Off Peak (nsf) Non-Summer Off Peak

(sn) Summer Intermediate (nsn) Non-Summer Intermediate

NOTE 1: The definitions for symbols (s) Summer, (sp) Summer Peak, (sf) Summer Off Peak, (ns) Non-Summer, (nsp) Non-Summer Peak and (nsf) Non-Summer Off Peak are to be consistent with language set for by the applicable utility.

NOTE 2: Offerors may submit prices based on the Requirements clause (Load Following) and/or in accordance with the Bandwidth clause contained in this solicitation. Both will be evaluated on an equal basis.

NOTE 3: Contractor shall not discuss nor disclose any load information to any outside third party entity without prior written consent from the Contracting Officer.

NOTE 4: The following locations participate in the PJM Emergency Load Response Program:

Customer State MW Usage

Fort Detrick MD 2,000 kW Fort Meade MD 1160 kW Carlisle Barracks PA 500 kW Carlisle Barracks PA 500 kW DDD- New Cumberland PA 1000 kW Bldg 6000, Bolling AFB DC 1,000 kW Marine Barracks DC 960 kW Maryland Procurement Office MD 600 kW

For details, please view the specific Installation Data sheets.

SECTION C – STATEMENT OF WORK/SPECIFICATIONS

C800 STATEMENT OF WORK/SPECIFICATIONS (ELECTRICITY) (DLA ENERGY JAN 2012)

(a) STATEMENT OF WORK. The Contractor shall supply electricity and any ancillary services required to deliver electricity to the point of delivery and for the scheduling and coordination of the delivery of electricity to the service point for each account under the contract. 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 delivery point 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 Government for the nondelivery of the firm requirements in accordance with paragraphs (f) and (m) of the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS clause.

(b) INVOICE AND PAYMENT. Will vary from solicitation to solicitation depending on state requirements and customer needs.

(1) Installation name, Line Item, and individual account information (Account Number, Meter Number, and Service

Location)

(2) Billing period for each account

(3) Total consumption for each account (broken down by Peak, Off-Peak, Semi-Peak if applicable)

(4) Total Energy Charge (broken down by energy charges and demand charges)

(5) Demand information for each account (broken down by Peak, Off-Peak, Semi-Peak if applicable)

(6) Charges for services broken out in detail for each account in a manner consistent with the terms and conditions of the contract and the applicable MPUC requirements.

(7) All information required by the applicable MPUC to be included on customer invoice.

NOTE 1: If a contractor/supplier is unable to issue a bill based on actual meter reading due to the failure of the transmission and distribution utility, municipally owned utility or electric cooperative to obtain or transmit a meter reading to the contractor/supplier, the contractor/supplier may issue a bill based on an estimated reading for the affected account. The contractor/supplier must inform the customer of the reason for the issuance of the estimated bill, and the Government reserves the right to obtain documentation relating to the efforts taken by the contractor/supplier to obtain the meter read data. For estimated billing purposes, the contractor shall use the relevant monthly consumption data (as the estimate) included in the applicable Installation Data Sheet. All estimated bills shall be trued up on the next billing cycle.

NOTE 2: Supplier coordination with the local utility will be necessary to ensure that these customers receive identical billing data from both the supplier and the local utility (i.e. commodity and wires charges must be based on the utility’s billing cycle).

(c) METERING AND METER READING SERVICES. Will be provided by the incumbent UDC for each account.

(d) SCHEDULING AND SUPPLY MANAGEMENT. It shall be the Contractor's responsibility to schedule deliveries for all accounts awarded for the time period specified herein. The Contractor shall be responsible for supply management and overall coordination of production, transmission, and distribution of electrical power to the service point of each account identified in the contract.

As such, the Contractor shall be knowledgeable of and responsible for imbalance policies, transmission grid losses, transmission congestion charges and UDC line losses for the delivery of electricity to the service point of each account under the contract. The Contractor must meet all applicable State and Federal requirements necessary to successfully complete any contract. The Government will not pay any costs associated with the Contractor's failure to deliver electrical power at the delivery point sufficient to meet the demand at the service point of each account under the contract or to schedule and coordinate for the delivery of electricity to each service point.

(e) RECORD KEEPING. The Contractor shall keep records of data required to bill in accordance with the utility tariff of each account (demand and consumption data) in an electronic database format compatible with Microsoft Access or a spreadsheet format compatible with Microsoft Excel. These records shall be made available to DLA Energy or to any party designated by DLA Energy as authorized to request this data. In the event that the Contractor maintains records on demand and consumption data in addition to that required to bill in accordance with the utility tariff, said data shall also be made available to DLA Energy or to any party designated by DLA Energy as authorized to request this data. The Contractor shall provide (or make available) to DLA Energy or to any party designated by DLA Energy, interval data (for those accounts with an interval meter) in Microsoft Excel format, on a monthly basis throughout the entire delivery term of any resultant contract.

(f) ORDERING. Orders shall be made in accordance with the ELECTRICITY ORDERING PROCEDURES contract provision.

(g) 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.

(h) SERVICE POINT. For this solicitation and any resulting contract, the service point is defined as the meter(s) indicated for each account awarded as described in Attachment III, Block 2.

(i) 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.

(j) 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 facility’s electric requirement (if available) and the two parties shall enter into 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.

I1.03-11 TAILORED PARAGRAPHS OF FAR CLAUSE 52.212-4 CONTRACT TERMS AND CONDITIONS. ALL OTHER

INSTRUCTIONS INCLUDED IN FAR 52.212-4 ARE HEREBY INCORPORATED BY REFERENCE (SEE

BLOCK 27A OF STANDARD FORM 1449). (JUN 2009) (TAILORED)

(f) EXCUSABLE DELAYS. The Contractor shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of the Contractor and without its fault or negligence, such as acts of God or the public enemy, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, civil disturbance, hostile forces, terrorist acts or transmission failure.

An excusable delay or similar event suffered by an independent service operator (ISO) (or an equivalent of an ISO) or a utility distribution company (or electric distribution company or transmission distribution services provider) shall constitute an excusable delay hereunder.

The Contractor shall notify the Contracting Officer in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly provide notice to the Contracting Officer of the cessation of such occurrence. Upon delivery of notice of the occurrence of an excusable delay, the obligations of the Contractor shall be suspended to the extent affected by such excusable delay.

(k) TAXES .

(1) The contract price includes all applicable Federal, State, and local taxes and duties in effect at contract signing.

(2) After-imposed Federal, State, or local tax, as used in this clause, means any new or increased Federal, State, or local excise tax or duty, or tax that was exempted or excluded on the contract award date but whose exemption was later revoked or reduced, or whose computation was later changed during the contract period, on the transactions or property covered by this contract that the Contractor is required to pay or bear as the result of legislative, judicial, or administrative action taking effect after the contract date. It does not include social security tax, income tax, or other employment taxes. The contract price shall be increased by the amount of any after-imposed Federal, State or local tax, provided the Contractor warrants, in writing, that no amount for such newly imposed Federal, State, or local excise tax or duty or rate increase was included in the contract price, as a contingency reserve or otherwise.

(3) After-relieved Federal, State, or local tax, as used in this clause, means any amount of Federal, State, or local excise tax or duty that would otherwise have been payable on the transactions or property covered by this contract, but which the Contractor is not required to pay or bear, or for which the Contractor obtains a refund or drawback, as the result of legislative, judicial, or administrative action taking effect after the contract date. It does not include social security tax, income tax, or other employment taxes. The contract price shall be decreased by the amount of any after-relieved Federal, State, or local tax.

NOTE: For all Pennsylvania line items, the PA Gross Receipts Tax (GRT) shall not be included in the offeror’s unit price. It shall be billed as a direct pass-through with no additional mark-up, as a separate line item.

(l) TERMINATION FOR THE GOVERNMENT'S CONVENIENCE

(1) In accordance with all applicable state and local distribution company regulations, the Government reserves the right to terminate this contract with respect to any or all contract quantities, for its sole convenience. In the event of such termination, the Contractor shall cease deliveries hereunder with respect to such terminated contract quantities on the first allowable date subsequent to such termination according to the applicable tariff sheets of the local distribution company. The Contractor shall cause any and all of its suppliers and subcontractors to cease work related to this contract prior to the date and time specified by the Government for the termination. Subject to the terms and conditions of this contract, the Contractor shall be paid for electricity delivered under the contract prior t the date and time specified by the Government for the termination of any or all contract quantities plus any additional energy the Contractor is required to deliver for the Government’s account under applicable location distribution company tariff sheets.

(2) In the event of a termination for convenience, the Government shall pay the Contractor the termination value, if positive, calculated by the following formula:

(i) Firm Fixed Price:

A = Σ (B - C)*D

Where-- A = Termination value.

B = Award price for each usage period for each season.

C = Forward market bid price, defined herein.

D = Contract quantity for each usage period for each season (based on data listed in the Installation Data Sheets).

(A) If the termination value on the date of termination is negative, the Contractor shall not be entitled to any payment.

(B) The forward market bid price shall be defined as the average of on and off peak prices at PJM for a term equal to the remaining term of the contract. The forward market price will be determined by the Contractor in a commercially reasonable manner, which may include polling energy brokers on the date of termination. The Government shall have the right to reasonably audit forward market price data obtained by the Contractor.

(C) In the event that the Government elects to terminate on a date other than the end of a month or at the end of the summer/non-summer season, as defined by applicable local distribution company and tariff, the estimated remaining contract quantity will be calculated by prorating the partial month or partial season of service.

(D) In the event of a termination for convenience, the Government’s liability shall be limited to the termination value calculated in accordance with the provisions of this clause.

(m) TERMINATION FOR CAUSE. The Government may terminate this contract, or any part hereof, for cause in the event of any default by the Contractor, or if the Contractor fails to comply with any contract terms and conditions, or fails to provide the Government, upon request, with adequate assurances of future performance. In the event of termination for cause, the Government shall not be liable to the Contractor for any amount for supplies or services not accepted, and the Contractor shall be liable to the Government for any and all rights and remedies provided by law. If it is determined that the Government improperly terminated this contract for default, such termination shall be deemed a termination for convenience.

(n) TITLE. Title to the electricity supplied by the Contractor under this contract shall pass to the Government upon delivery at the delivery point specified in the Schedule. The Contractor warrants that the electricity delivered to the Government under this contract will be free and clear of any liens, claims and encumbrances arising prior to delivery at the delivery point specified in the Schedule.

(o) WARRANTY. The Contractor warrants and implies that the electricity delivered hereunder conforms to the tariff of the transmitting and/or distributing utility at the delivery point specified in the Schedule.

(p) LIMITATION OF LIABILITY. Except as otherwise provided by an express warranty, the Contractor will not be liable to the Government for any consequential, special, incidental, punitive, exemplary or indirect damages or other business interruption damages except to the extent caused by a contractor’s or its agent’s gross negligence or willful misconduct.

H800 NOTIFICATION OF TARIFF/RATE CHANGES (ELECTRICITY) (DLA ENERGY JUN 2005)

The Contractor shall use commercially reasonable efforts to provide the Contracting Officer with written 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 (five business days). Failure of the Contractor to comply with this provision shall not be grounds for termination for cause.

NOTE: Email notification is acceptable provided it includes the specific tariff changes (via cut and paste) and its effective date.

I800 ELECTRICITY ORDERING PROCEDURES (DLA ENERGY FEB 2002)

For the purposes of this contract, the instantaneous load at the service point, as described in the individual Installation Data Sheets, shall constitute an order for electricity to be furnished under this contract.

I84.02 REQUIREMENTS (ELECTRICITY) (DLA ENERGY JAN 2012)

(a) This is a requirements contract for the supplies or services specified, and effective for the period stated in the Schedule.

The quantities of supplies or services specified in the Schedule are estimates only and are not purchased by 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.

(b) Delivery or performance shall be made only as authorized by orders issued in accordance with the ELECTRICITY ORDERING PROCEDURES provision.

(c) 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.

(d) The Government is not required to purchase from the Contractor requirements in excess of any limit on total orders under this contract.

(e) The Contractor shall not be required to make any deliveries under this contract after DECEMBER 2014.

I801 ELECTRICITY PRICING FOR QUANTITIES OUTSIDE ESTABLISHED LOAD BANDWIDTH

(DLA ENERGY AUG 2002) (REV)

(a) The Government may consume electricity within the allowable variance in consumption specified in the contract (bandwidth) without adjustment to the contract price. For each line item, applicable bandwidth is the range from 10 percent above to 10 percent below the estimate of consumption included in the Installation Data Spreadsheets for the line item for that month. If, in any month, consumption of electricity falls outside the contract bandwidth for any line item, there shall be an adjustment to the contract price. The adjustment methodology is specified below.

(b) If, in any month, an Energy Deficiency occurs, an Energy Deficiency Adjustment shall be made. Energy Deficiency is the amount in kilowatt hours (kWh) by which consumption of electricity falls below the lower limit of the contract bandwidth for a line item for a month. Energy Deficiency Adjustment means the charge or credit calculated each monthly billing period for the Energy Deficiency.

The Energy Deficiency Adjustment equals the Energy Deficiency times the contract price in cents per kWh minus the Average Market Price for the month. The Average Market Price for a month is the sum of Daily Market Prices for that month divided by the number of days during the month. A Daily Market Price is the hourly Real-Time LMP for a day, found on PJM’s website (for the applicable zone where the impacted installation is physically located). If the result is a positive number, then the Energy Deficiency Adjustment will be a charge to the customer; if the result is a negative number, then the Energy Deficiency Adjustment will be a credit to the customer.

Expressed as a formula, the Energy Deficiency Adjustment is EDA = ED x (CP - AMP) where--

EDA is the Energy Deficiency Adjustment ED is the Energy Deficiency CP is the contract price AMP is the Average Market Price

(c) If, in any month, Excess Energy is consumed, an Excess Energy Adjustment shall be made. Excess Energy is the amount of electricity consumed above the upper limit of the contract bandwidth for a line item for a month. Excess Energy Adjustment means the charge calculated each monthly billing period for the Excess Energy. The Excess Energy Adjustment equals the Excess Energy times the contract price in cents per kWh minus the Average Market Price for the month. The Average Market Price for a month is the sum of the Daily Market Prices for that month divided by the number of days during the month. A Daily Market Price is Real Time LMP for a day, found on PJM’s website (for the applicable zone where the impacted installation is physically located). If the result is a positive number, then the Excess Energy Adjustment will be a credit to the customer; if the result is a negative number, then the Excess Energy Adjustment will be a charge to the customer.

Expressed as a formula, the Excess Energy Adjustment is EEA = EE x (CP - AMP) where--

EEA is the Excess Energy Adjustment EE is the Excess Energy CP is the contract price AMP is the Average Market Price

The Excess Energy Adjustment shall be calculated following the monthly billing period in which the energy was consumed and included on the next monthly invoice.

I820 ELECTRICITY REGULATORY CHANGES (DLA ENERGY JAN 2012)

(a) The contractor price includes all applicable independent system operator/regional transmission organization (ISO/RTO charges to be in effect at contract signing.

(b) After-imposed ISO/RTO charges, as used in this provision, means any new ISO/RTO charges subject to regulation, that were exempted or excluded on the contract date but whose exemption was later revoked on the transactions covered by this contract that the Contractor is required to pay or bear as the result of legislative, judicial or administrative action taking effect after the contract date. The contract price shall be increased by the amount of any after-imposed ISO/RTO charge (with no mark up), provided the Contractor warrants in writing that no amount for such newly after-imposed ISO/RTO charge was included in the contract price, as a contingency reserve or otherwise.

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

SECTION K- REPRESENTATIONS, CERTIFICATIONS, AND STATEMENTS

K33.01 AUTHORIZED NEGOTIATORS (DLA ENERGY APR 2007)

The offeror or quoter represents that the following persons are authorized to negotiate on its behalf with the Government in connection with this request for proposals or quotations.

Name Title Phone Number E-Mail Address

SECTION L - INSTRUCTIONS, CONDITIONS AND NOTICES TO OFFERORS

L800 INSTRUCTIONS TO OFFERORS (ELECTRICITY)(DLA ENERGY JAN 2012)

(a) EVIDENCE OF RESPONSIBILITY.

(1) An offeror must possess, at a minimum, 12 months of experience (within the past two years) providing supply and transportation (firm and/or interruptible) of electricity to wholesale or retail customers by date of Technical Proposal submission. If the offeror does not possess at least 12 months of experience, it will not be considered for award.

(2) An offeror shall provide evidence that it is authorized to conduct business by each state’s regulatory body having jurisdiction over the state’s electric industry prior to award of any contract for solicited requirements.

(3) The offeror must possess, or demonstrate the ability to obtain, transmission service agreements in the company’s name for the points of receipt specified in the Schedule. Failure to document the ability to obtain necessary transmission service agreements shall render the offeror nonresponsible

(4) The evidence of responsibility required above is in addition to the general responsibility criteria set forth in FAR 9.104.

(5) The Government may conduct preaward surveys in accordance with FAR 9.106 and obtain, from available sources, relevant information concerning the offeror’s ability to satisfy the responsibility standards stated in this provision and FAR Part 9.

(b) OFFEROR’S PROPOSAL.

(1) An offeror must propose to supply the total line item quantity for the line items identified in the Schedule. Failure to offer the total line item quantity will preclude Government evaluation and award to the offeror for the line items. If an offeror chooses to submit more than one offer, it may do so by submitting a separate price submittal for each. Offers based on other pricing mechanism or alternate methods of supplying electricity may be considered.

(2) PART I – EXECUTED RFP. The original Part I shall contain original signatures. The executed RFP shall consist of the following:

(i) Standard Form 1449: Solicitation,/Contract/Order for Commercial Items, with Block 17 and Blocks 30A through 30C completed. By completing Blocks 30A through 30C, the offeror agrees to the terms and conditions of the RFP.

(ii) The Offeror Representations and Certifications (Section K).

(iii) The completed Attachment III. To accurately evaluate offered prices, no alterations of Attachment III are allowed. Any alterations of Attachment III will constitute an invalid offer and the proposal will not be reviewed further. Offerors submitting an alternative proposal shall not use Attachment III as part of their submission (To be submitted on the due date for Price Submissions, see page 2).

(iv) Other Required Documents. The offeror shall submit all documents required by the terms and conditions of the RFP, such as subcontracting plans (see Attachment IV).

(v) FACSIMILE PROPOSALS. Pursuant to the FACSIMILE PROPOSALS provision, the offeror must submit a hard copy of the original signed offer, which must be received within 3 working days of the opening/closing date. The facsimile number is

(703) 767-8757.

(vi) E-MAIL PROPOSALS.

(A) Offerors are requested to submit proposals via e-mail. E-mail proposals are subject to the same rules as paper proposals.

(B) E-mail receiving data and compatibility characteristics are as follows: e-mail address:

dlaenergy.eteam@dla.mil

(C) Initial proposals, modifications and proposal revisions submitted via e-mail must contain a signature.

(D) Attachments that are not in .pdf file format must be sent password protected for “READ ONLY” to ensure the integrity of the data submitted.

(E) Proposals submitted electronically through a single e-mail must be no more than 10 MB. DLA ENERGY’s mail server will reject messages larger than 10 MB.

(F) Offerors are responsible for verifying receipt of e-mail offers by contacting the Contracting Officer prior to the solicitation closing time.

(3) PART II – TECHNICAL CAPABILITY. To substantiate meeting general and special responsibility criteria and the evaluation criteria stated in the RFP, the offeror shall submit the following:

(i) A brief description of the risk management practices to be employed during contract performance;

(ii) A brief description of the sources of working capital for the offeror’s power marketing activities, in addition;

- Offeror with an Investment Grade credit rating from at least two of the three rating agencies (S&P, Moody’s and Fitch) as stated on Attachment I, shall provide documentation of the ratings.

NOTE: Investment Grade is defined as at or above BBB-(S&P/Fitch) or Baa3 (Moody’s). If the Offeror, its Parent Company Guarantor is rated by more than two rating agencies and the ratings are split, the lowest two ratings will be used.

- Offeror or whose Parent Company Guarantor, is not rated by at least two of the three credit rating agencies

(S&P, Moody’s or Fitch) as having an Investment-Grade credit rating, shall provide a standby irrevocable letter of credit, prior to award, from a federally-insured financial institution for a sum not less than 1 million dollars available to the offeror for the entire term of the contract performance period, for all awards greater than ten million dollars.

(iii) Résumés of the key personnel who would be assigned to administer a resultant contract;

(iv) State Marketing License data. Date of Approval;

(v) The documentation required in paragraph (a) of this contract provision; and

(vi) Attachment I–

(A) Identify the total number of customers that you currently serve that have a requirement of 1 megawatt or greater both inside and outside the applicable independent system operator/regional transmission organization.

(B) Credit Rating of Contractor or Parent Company.

(vii) An offeror’s proposal must be complete with regard to this provision as well as all other requirements of the solicitation. Offerors are advised to submit proposals that are fully and clearly acceptable without additional information or explanation.

Failure to provide a complete Technical Experience submission shall make an offer unacceptable and ineligible for award.

(4) PART III – PAST PERFORMANCE. Information collected in the Experience with End-users form (Attachment II) will be used to contact offeror’s customers and inquire about the offeror’s past performance. By submitting this form, the offeror agrees to permit the Government's representatives to contact the customers listed and inquire about the past performance of the offeror. The offeror will be given an opportunity to address unsatisfactory reports of past performance, and the offeror's response, or lack thereof, will be taken into consideration. The offeror’s recent contracts will be examined to ensure that corrective measures have been put in place to prevent the recurrence of past performance problems. Prompt actions taken by the offeror to correct performance problems will be a reflection of management concern for customer satisfaction. However, such action may not mitigate all negative performance trends.

Offerors are advised that the Government may use information gained from any source known to the Government to evaluate past performance. However, the Government reserves the right to only consider the Contractor’s performance under Government or DLA Energy contracts. Also, describe any past efforts to subcontract with small businesses and/or Historically Black Colleges and Universities/Minority Institutions (HBCUs/MIs). Include, for past efforts (within 3 years of the closing date of this solicitation), a statement identifying highly successful efforts or any regulatory or subcontracting plan noncompliance.

(5) PART IV – COMMERCIAL SUBCONTRACTING PLAN. The Contractor shall submit a Commercial Subcontracting Plan in accordance with FAR Part 19.704 (see Attachment IV).

(6) PART V – SOCIOECONOMIC SUBMISSION. Provide the information requested in the SOCIOECONOMIC PROPOSAL provision.

(i) Offerors shall submit a plan that demonstrates their commitment to providing subcontracting opportunities to small businesses and HBCUs/MIs. All offerors regardless of business size are required to provide socioeconomic commitment. Small businesses will be credited for the dollar value/percentage of the work they perform as if the work were subcontracted to a small business concern. Work performed by a small business in-house shall be identified in the socioeconomic plan.

(ii) As part of the plan, the offeror shall include--

(A) A description of the efforts the company will make to ensure that small businesses and/or HBCUs/MIs will have equal opportunity to compete for subcontracts under any resulting contract.

(B) A description of the offeror’s current and planned proposed range for services, supplies, and any other support that will be provided by small businesses and/or HBCUs/MIs.

(C) The specific names of subcontractors to the extent they are known.

(D) A description of any future plans the company has for developing additional subcontracting opportunities for small businesses and/or HBCUs/MIs during the contract period.

(E) Identification of the portion of the offeror’s proposal, as a percentage of dollars, that will be subcontracted to small businesses and/or HBCUs/MIs.

(F) The types of performance data the offeror would accumulate and provide to the Contracting Officer regarding their support of small businesses and/or HBCUs/MIs during the period of contract performance.

(G) The name and title of the individual principally responsible for ensuring company support to such firms.

SECTION M – EVALUATION FACTORS FOR AWARD

52.212-2 EVALUATION – COMMERCIAL ITEMS (ELECTRICITY) (TAILORED) (DLA ENERGY) (AUG 2003)

(a) The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other non-price factors considered. The following factors shall be used to evaluate offers:

(i) Past Performance

(ii) Technical Capability

(iii) Price

(iv) Socioeconomic Proposal

Past Performance is the most important non-price evaluation factor and the socioeconomic proposal is the least important non-price evaluation factor. Technical capability is not as important as past performance, but is significantly more important than the socioeconomic proposal. When combined all three of these evaluation factors are equally important as price.

(b) A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within the time for acceptance specified in the offer, shall result in a binding contract without further action by either party. Before the offer's specified expiration time, the Government may accept an offer (or part of an offer), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before award.

M800 PRICE EVALUATION (ELECTRICITY) (DLA ENERGY JAN 2012)

Price evaluations will be conducted by comparing the estimated savings to be obtained by the Government under each offer received. The basis of calculating the estimated savings will be a comparison of the anticipated total delivered cost under the offer received with the cost to the Government under the applicable tariffs for each line item.

NOTE 1: For purposes of price evaluation only, the savings estimates described above will be determined using the applicable utility distribution company (UDC) tariffs which will be in effect during the period of performance.

For accounts that do not have a firm-fixed price tariff, the Government will conduct an independent price analysis, utilizing prevailing and projected market rates, to determine if offered prices are fair and reasonable.

M7 SOCIOECONOMIC EVALUATION (DLA ENERGY FEB 2005)

The relative merits of the Socioeconomic Proposal will be evaluated based on the degree to which an offeror’s proposal demonstrates the commitment to use, in performance of the offered requirements, small businesses and/or Historically Black Colleges/Universities or Minority Institutions (HBCUs/MIs).

NOTE: The offeror’s proposals for socioeconomic support will be made a part of any resulting contract for use in determining how well the Contractor has adhered to its socioeconomic plan. This plan will be monitored by the Small Business Office of the Defense Logistics Agency Energy (DLA Energy) as a means of assisting the Contracting Officer in determining how well the Contractor has in fact performed. This determination will then be used as a consideration prior to option exercise and future source selection decisions.

Performance on prior contracts in subcontracting with and assisting small businesses and HBCUs/MIs will be part of past performance evaluation.