Attachment_2_Pricing_Worksheet.xlsx

Pricing Worksheet

offeror fill-in Total Proposed Price: $ - 0

Attachment 2 - Production and Pricing Worksheet SPE600-15-R-0402 Amendment 0002

Price Proposal:

The Price proposal should present fair and reasonable prices in accordance with FAR Part 15. Contractors must provide the unit price for the first year of electric service. A Contractor’s Proposed first year electricity price (CLINs 0001 and 0002 combined) that exceeds $0.049/kWh shall not be considered. Annual cost escalation rates may be flat (i.e., annual cost escalation = 0%), increasing or decreasing (i.e., annual cost escalation ≠ 0%), or they may vary from year to year (e.g., escalation = 0% in year 2 and 1% in years 3-10). Total cost over the term of the proposed contract must be equal to or less than projected Department of Navy costs over the same term. Savings will be calculated by comparing Proposers’ total projected costs to the following pricing: first year energy rate of $0.049/kWh, compounded annually thereafter at 2.0%.

*CLIN 0002 - An offeror's proposal should indicate a single fixed rate for years 1-2 of the contract for Other Market Charges (CLIN 0002), to include congestion. Beginning in Year 3, Other Market Charges (CLIN 0002) will be a pass-through to the Government. However, the Contractor will be required to cooperate with the Government to fix certain market-based costs for the purpose of minimizing costs and/or volatility for certain elements for the remainder of the contract term. For evaluation pruposes only, beginning in Year 3, the Government has escalated the CLIN 0002 rate by 2.0% annually thereafter.

Department of Navy desires to maximize electricity cost savings. The net present value (NPV) of the Contractors’ total projected cost over the term of the proposed contract must be equal to or less than NPV of total projected DON costs over the same term. To calculate NPV, DON uses discount rates in accordance with the Office of Management and Budget’s Circular A-94.