FERMI__QA_Final.docx

DLA FERMI LABS

Solicitation SPE600-16-R-0404

Please find below the Government’s responses to questions and request for clarifications regarding DLA Solicitation SPE600-16-R-0404. All other questions that were submitted and not answered within this document are still being researched or considered exception to the terms and conditions of the RFP and shall be included in your bid response as such.

1. Is there a way to obtain more historical data (more than 12 months) on the account?

A: The Government will provide Letter of Authorizations to all responsive and responsible bidders after the receipt of offers; This LOA will allow offers to request the usage, load, interval data, etc., as needed.

2. The offeror understands that it is the Government’s desire to have the Supply Service Fee fixed and that the balancing and operating reserves should be included in this number. However, balancing and operating reserves often fluctuate and are variable costs. Please elaborate on what is to be included in the Supply Service Fee.

A: Please refer to B19.46 (c) SUPPLY SERVICE FEE on page 19 of the solicitation.

3. In addition to the block schedule that will be provided in Attachment V, should this offeror become the winning bidder, would the Government be open to providing load forecast on a regular basis (every24-48 hours) to provide the most accurate rates and portfolio management?

A: Please see document titled Attachment V Block Purchase Schedule in FERMI_2016_Combined_Synopsis_Amendment 0001posted to FBO on 2-19-16.

4. Is the Government requesting that the hourly energy usage used to price the blocks be based off of NERC hours or Utility (ComEd) hours?

A: The block shall be delivered to the ComEd zone.

5. On page 19, the RFP states that, “The contractor shall submit both the ComEd and supplier bills to the customer at the same time. Invoices must be submitted in both hardcopy and electronic form.” With dual billing, the supplier does not receive an invoice from ComEd. ComEd sends the delivery service charges directly to the customer. Please clarify and confirm that the Government is requesting dual billing (one invoice from the supplier and one invoice from the utility).

A: The Government will utilize Dual Billing for any and all applicable awards made under this solicitation.

6. In the Synopsis added January 20, 2016, the Government states that it seeks to procure energy in blocks at the Northern Illinois Hub (NI Hub) with the remainder to be taken at the ComEd Zone LMP. Please clarify whether the Block will be delivered to the NI Hub or at the ComEd Zone. If the Block is to be delivered at the NI Hub will the Government agree to pay for the basis and if not, can Contractor deliver to the ComEd Zone?

A: The block shall be delivered to the ComEd zone.

7. RFP Clause B19.46 Block Purchases. This clause provides that for each separate block purchase, the Contractor will obtain pricing quotes from at least three wholesale counterparties, or at least four if one of the quotes is from a Contractor affiliate. It also requires that Contractor will provide those quotes to Government upon request to ensure that adequate competition is being obtained.

Please confirm that if required by confidentiality agreements or obligations, the Contractor may withhold the identity of the wholesale counterparties from whom the pricing quotes are obtained, and redact the names of such wholesale counterparties from any correspondence or written communication to the Government, including audits.

A: Contractor may withhold the identity of the wholesale counterparties from whom the pricing quotes are obtained and redact the names of such wholesale counterparties from any correspondence or written communication to the Government.

Pursuant to FAR 52.212-5 (d), Comptroller General Examination of Record (as shown on page 15 of this solicitation), the Government has the right to audit the price quotes or other information submitted by the Contractor’s electricity suppliers in order to verify price reasonableness and best value.

8. Please confirm that the Government will accept fewer than 3 or 4 quotes if market liquidity is such that fewer pricing options are available.

A: The Government will not accept fewer than three quotes.

9. RFP Clause B19.46 Block Purchases (1) Electricity – Purchase by Firm-Fixed Price Blocks. We are confused by the following statement from subpart (i): “Any modification to the Block Purchase Schedule shall not exceed 12 months beginning one month subsequent to the date when the Government directs the Contractor to make a block purchase, unless different terms are mutually agreed upon.” Please provide an example of the timeline the Government envisions will apply to the Block Purchase Schedule.

A: Please see document titled Attachment V Block Purchase Schedule in FERMI_2016_Combined_Synopsis_Amendment 0001posted to FBO on 2-19-16. Any modification to the Block Purchase Schedule would not affect any block scheduled to be purchased within one month of the date the Government directs the Contractor to make a block purchase. This could, at the earliest, include blocks scheduled to be purchased one month after the date on which the Block Purchase Schedule was modified; and at the latest, include any block purchases scheduled over the next twelve months following this earliest possible date. Any modification affecting scheduled block purchases outside of this range would be mutually agreed upon.

10. RFP Clause B19.46 Block Purchases (4) Renewable Energy Credits.

Please clarify whether the Government wants to see the Fixed REC component as a separate line item on the invoice or is it to be included in the Fixed Supply Service Fee?

A: Per Clause 19.46, the Renewable Energy Credit charges is identified as “Other Market Charges” therefore NOT included in the Supply Service Fee; and shall be invoiced in accordance with the INVOICE clause.

11. We believe that the true-up calculation set forth in the first Note for subpart (4) may result in unintended consequences and the inability to true up for the final months of the term.

The RFP’s example of how the true-up calculation would be applied does not address how the ACP will be applied for the planning year June 2020 – May 2021. As written, in July 2019 and July 2020, the charge would be based on all billed volumes that correspond to the planning year (June – May each year during the term). How would the charge be handled for the planning year June 2020 – May 2021 which impacts charges or credits in 2020? Since the 36 month term requested ends with the last meter read in December 2020, actual corresponding ACP values won’t be known until 7 months after the expiration of the contract.

A: The Government recognized that the actual ACP rate necessary to true-up the RPS payments made during the final year of the contract (January 2019 – December 2019) would not be available until June 2020. It is acceptable that the credit due to, or charge owed by, the Government (as applicable) be resolved outside of the contract period so long as the true-up value is calculated solely based on energy consumed by the customer during the contract period and in accordance with Section B, Provision B19.46 BLOCK PURCHASES (ELECTRICITY) (DLA ENERGY) (JAN 2012), Paragraph (b)(4) of the solicitation.

12. Please clarify how the Government anticipates handling the addition of future accounts to the resultant contract?

A: The Government does not anticipate the addition of future accounts under any contract resulting from this solicitation.

13. RFP Clause 52.212-4(l) – Termination for the Government’s Convenience. Please confirm that in the definition of the forward market bid price in subpart (B), the reference to ERCOT should be to PJM.

A: The Government acknowledges the reference to “ERCOT” should read “PJM” and will correct the RFP in a forthcoming amendment.

14. Please clarify the difference between Item (9) – Auction Revenue Rights credit and Item (12) Capacity.

A: Auction Revenue Rights (ARRs) are the mechanism by which the proceeds from the Annual Financial Transmission Rights Auction are allocated. PJM's capacity market, called the Reliability Pricing Model, ensures long-term grid reliability by securing the appropriate amount of power supply resources needed to meet predicted energy demand in the future.

15. RFP Clause C804(e) Record Keeping. Contractor does not keep records of data required to bill in a format compatible with Microsoft Access or in Microsoft Excel. However, Contractor is able to convert the data to Excel. Please confirm that this is acceptable to the Government.

A: Microsoft Excel is an acceptable format.

16. Please confirm that the DLA is requesting a 36 month term beginning on the January 2017 meter read date ending on the December 2019 meter read date and that the references to December 2020 in RFP Clause B1.08-2(d) and Clause B19.46(b)(4) should be changed to December 2019.

A: The Government acknowledges the reference to “December 2020 should read “December 2019” and will correct the RFP in a forthcoming amendment.

17. For Clarification. Section (4) Renewable Energy Credits specifically the ACP REC True up. Once the yearly rates are published and the true up performed can it be bundled into Adjustment line item?

A: If offeror is requesting that the ACP be bundled into the existing SSP line item, then this option is not acceptable to the Government.

18. Offers are to be held firm for 5 days. Will Suppliers be able to refresh after the 5 day period?

A: That determination will be made as necessary.

19. Regarding the “Tax” provision in FAR 52.212-4, could we get clarification on what taxes would be included? Supplier does not included taxes in the pricing for IL, nor do we pass any through.

A: It is the contractor’s responsibility to determine which Federal, State and Local taxes are to be included.

20. Also, could we get clarification on the electronic submission requirements that are mentioned in the 1st NOTE in this provision?

A: The customer at Fermi National Lab is requesting an electronic copy (PDF) of the monthly invoice in addition to hard copy invoice.

21. Does the Government currently have a PJM subaccount? If not, would the Government be open to a subaccount?

A: The Government will allow contractors to setup PJM subaccounts as long as it meets the terms and conditions of the solicitation.