SPE600-16-R-0414_A0002_Questions_Answers.docx

DLA Energy Solicitation SPE600-16-R-0414 A0002 Texas 2017 Attachment A Questions & Answers

1. QUESTION: Clause B802 (b), Can we have some more detail regarding the transaction fee associated with the Real Time Settlement Point Price? Specifically, should this fee be similar to the Supplier service fee for the Block product in that it should include zonal congestion and include any fees not addressed by the Energy and Other Market Charges sections of the product description, such as ancillary services and any renewable energy requirements?

DLA ENERGY RESPONSE: See A0001. Section B, B802(c) is updated to reference Section B, Table 2. All charges that are not passed through or in the energy component shall be in the transaction fee. CLIN 0002 Dyess AFB is priced at the load zone where as CLIN 0016 NASA JSC is priced at the Houston Hub.

2. QUESTION: The other market charges under the Real Time Settlement Point Price specify that no other charges apply. I would like to ensure that similar to the Block Product, the UDC/TDSP Charges, PUC Charges, RUC Charges, GRT and Transmission/Distribution losses will be passed through. Transmission/Distribution losses are to be included in Transaction Fee.

DLA ENERGY RESPONSE: See A0001, B802(c) is updated to capture pass throughs. In regards to CLIN 0002 Dyess AFB, B802(a), “the METERED load of the account SHOULD BE INCREASED FOR LINE LOSSES to the same LOAD ZONE”. B802 (b), Transaction Fee “shall compensate the Contractor for all services performed, as well as all retail service charges, fees, and applicable taxes associated with supplying energy to the point of delivery.” Dyess AFB will only have TDSP, GRT, PUC and RUC passed through as illustrated in Section B, Table 2 Supplies to be Furnished.

3. QUESTION: Section B1.08 (Solicitation page 6) states that GRT and PUC taxes will “remain unchanged the entire delivery period”. Please confirm that GRT and PUC taxes will, however, be subject to FAR 52.212-4(k).

DLA ENERGY RESPONSE: See Amendment 0001 for removal of “remain unchanged…”.

4. QUESTION: If the charges and data described in Section C800 (Solicitation page 10) and Attachment VI (Fort Hood) are not on supplier’s invoices as produced by its automated billing systems, is it acceptable to provide a summary spreadsheet each month containing such information?

DLA ENERGY RESPONSE: For all installations other than CLIN 0004 Fort Hood and CLIN 0016 NASA, monthly summary spreadsheet is acceptable.

For CLIN 0004 FT Hood – a spreadsheet pursuant to FT Hood Attachment shall be submitted on a monthly basis. Further instructions provided in post-award meeting conducted with FT Hood.

For CLIN 0016 NASA, summary spreadsheet is acceptable as long as monthly billing package follows format described in C800 (** CLIN 0016 NASA JSC)

5. QUESTION: Should the retail adder described in Section I821 (Solicitation page 22) be included as part of the supplier’s bid?

DLA ENERGY RESPONSE: Yes, Section I, I821 Holdover corresponds with CLIN 0017 Holdover for pricing purposes. The Retail Adder will be priced during the Reverse Auction.

6. QUESTION: With respect to the hold-over: DLA indicates this period is only 90 Days, and that the provider would need to notify them of which accounts have not switched to new supplier, and take action necessary to effectuate transfer. This holdover period could be longer if new supplier does not submit switch. What is the Proposer’s methodology for seeking compensation if a subsequent supplier fails to switch past the 90-day window?

DLA ENERGY RESPONSE: Upon contract award, it is the inherent responsibility of the new contractor to initiate transfer of all accounts. During the 90-day holdover period, the contractor is responsible for identifying any active account which has not been transferred to the follow-on supplier and take any action necessary and appropriate to effectuate the transfer as soon as the contractor becomes aware of the holdover situation. If an account fails to transfer within these 90 days, Clause I821 will no longer apply and the incumbent would have to file a claim for equitable adjustment pursuant to DFARS 252.243-7002, Claims for Equitable Adjustment.

7. QUESTION: With respect to Dyess Onsite Gen: can generation flow back to grid? Are the assets registered with ERCOT?

DLA ENERGY RESPONSE: No, Dyess Onsite generation cannot flow back to the grid nor are registered with ERCOT.

8. QUESTION: Can you please provide details regarding the Dyess demand response contract and any payment/credit on the Invoice? Is the supplier to assume this contract?

DLA ENERGY RESPONSE: No, supplier will not assume the separate Demand Response Agreement between Dyess AFB and Demand Response provider. Please see A0001 section B1.08 d. 2. ii for credit information.

9. QUESTION: We must obtain regulatory approval to put residential meters on a commercial contract. These two meters were classified as Residential:

10204049757107410 ‐ Customs Border Protection

10443720003527304 ‐ USDA

We would appreciate information from you regarding these sites. Specifically, we are seeking the following:

a. A confirmation that the government pays the bills at these sites.

b. An explanation of what the government does at these sites.

DLA ENERGY RESPONSE: (a) Government pays bills for both accounts which are currently under DLA contract. (b) Explanation: 10204049757107410 ‐ Customs Border Protection – Account is for a trailer. 10443720003527304 ‐ USDA- Account covers quarters and barns.

10. QUESTION: Please clarify the Renewable Energy Credit (REC) requirement for the Solicitation. If REC requirement exists, is it by location, if so what percentage applies to each location/CLIN?

DLA ENERGY RESPONSE: To clarify, the Government does not have any REC requirement for this solicitation. Any Renewable Portfolio Standard (RPS) are applicable in accordance with ERCOT policy.

11. QUESTION: Please clarify what taxes should be included (apply) to individual CLINs? (Question is related to SECTION I – CONTRACT CLAUSES, page 15, taxes (k)).

DLA ENERGY RESPONSE: See A0001, Section B, under Table 2, and 52.212-4(k). Federal Entities are exempt from state sales taxes and it is the responsibility of the offeror to determine what taxes are applicable to any resultant contract.

12. QUESTION: Page 10/39, C800 (b) – Would you confirm our understanding that DLA’s reference to Consolidated REP Billing is providing the REP charges plus the Utility charges for each ESID, on its own separate invoice?

DLA ENERGY RESPONSE: Section C, C800(b), “The contractor shall provide a single bill for all accounts at each installation serviced under any contract.” Only CLIN 0007 Customs Border Protection (CBP) and CLIN 0016 NASA require separate invoices for all accounts.

13. QUESTION: Page 10 of 39, C800(b)(5): Demand information for each account number and ESID. The demand information shall also include date and time of occurrence. Is it acceptable to provide the billing data that is provided by the Utility and not try to manipulate the data to create information?

DLA ENERGY RESPONSE: See A0002 Section C800. It is acceptable to provide the data that is received from the Utility.

14. QUESTION: Page 11 of 39, (11): All estimated bills shall be trued up on the next billing cycle. Is it acceptable to provide a rebill of an estimated bill’s actual data upon receipt of the complete set of actual data from the Utility?

DLA ENERGY RESPONSE: See A0002 Section C800. A rebill is acceptable as long as the installation is notified of the utilities failure to obtain a meter read, late charges are not assessed, and the installation has 30 days to pay from the date of invoice receipt.

15. QUESTION: Regarding Attachment IV Fort Hood Checklist – please explain item 23 Credit % and its applicability.

DLA ENERGY RESPONSE: Regarding Attachment IV Fort Hood Checklist, #23 is no longer applicable and will be removed via A0001.

16. QUESTION: For clarity, would you state the payment terms DLA is seeking for each CLIN?

DLA ENERGY RESPONSE: IAW Section I, FAR 52-212-4(i), “The Government will make payment in accordance with the Prompt Payment Act (31 U.S.C. 3903) and prompt payment regulations at 5 CFR Part 1315.”

17. QUESTION: P14/39 (4) Discount – Would DLA be willing to accept a “discount” (reduction) to the contract price for payment terms less than what is sought in Question 16, above.

DLA ENERGY RESPONSE: Yes, we will accept discounts IAW FAR 52,212-4(i)(4); A0001 will add FAR 52.232-8, Discounts for Prompt Payment. Discounts for prompt payment will not be considered in the evaluation of offers.

18. QUESTION: C800, Page 11 of 39, **CLIN 0016 NASA JSC: The Contractor shall provide one billing package per month containing a bill for each individual ESI ID number. Please explain the contents of the ‘one billing package’.

DLA ENERGY RESPONSE: See C800, Page 11 of 39, **CLIN 0016 NASA JSC, 1-5 describes what constitutes a billing package.

19. QUESTION: Is Ft. Hood the only CLIN that is exempt from GRT? If not, can you provide the specific sites that also would be exempt from GRT?

DLA ENERGY RESPONSE: CLIN 0004 Ft Hood is the only installation exempt from GRT.

20. QUESTION: Under DFARS 252.232-7003, "the Contractor shall submit payment requests and receiving reports using WAWF, in one of the following electronic formats that WAWF accepts: Electronic Data Interchange, Secure File Transfer Protocol, or World Wide Web input. Information regarding WAWF is available on the Internet at https://wawf.eb.mil/ ." Will all DLA customers in this solicitation only accept electronic invoicing, or will standard paper bills, that adhere to the other billing requirements in the solicitation be sufficient?

DLA ENERGY RESPONSE: DLA required for CLIN 0008 ONLY, the use of WAWF (strictly electronic submission). DLA will issue another amendment and identify all of the various invoicing systems prior to pricing.

21. QUESTION: Section K appears to be the same attestations we make annually when we certify our CAGE code in SAMS. Does this need to be filled out if our CAGE Code is current?

DLA ENERGY RESPONSE: (RFP Page 27) Pursuant to Clause 52.212-3/I “Offeror Representation and Certifications – Commercial Items (Alternate I): “The offeror shall complete only paragraph (b) of this provision if the Offeror has completed the annual representations and certifications electronically via the SAM Web site…”

22. QUESTION: Section B802 (i)(a) (Solicitation page 9) states that the metered consumption should be increased for line losses. Does Dyess AFB require this increase up of consumption to be based off of line loss factors for each meter? Does Dyess require the increase for line losses to be 1) listed as a separate item on the invoice or 2) included in the energy charge altogether as only one item on the invoice?

DLA ENERGY RESPONSE: See answer # 2.

23. QUESTION: Pursuant to Attachment IV Fort Hood Invoice Checklist ….To ensure information requested for items #41, #42, #43, #49 and #50 are handled correctly, will you please provide the sample PF worksheet as well as an example where PFAR is used to adjust PF.

DLA ENERGY RESPONSE: A sample will not be provided prior to award. Ft Hood will hold a Post-Award meeting to explain all points in Attachment IV Fort Hood Invoice Checklist.

24. QUESTION: Page 9: Demand Response - For the Dyess facility and the demand response program:

a. Is it the DLA’s expectation that the awarded retail electric provider will pass through a credit directly from a third party administrator on the supply bill?

b. Who is the current third party administrator?

DLA ENERGY RESPONSE:

(a) Yes, see Section B, B1.08, “After award, Dyess AFB will provide the Demand Response Provider (DRP) with the awardee’s contact information. When a credit is applicable, the DRP will e-mail and notify Dyess AFB of the credit to be applied. Simultaneously, the DRP will send the awardee a check for the credit. All credits resulting from the Demand Response Program will be placed on the invoice at no charge to Dyess AFB.”

(b) This information will be provided at time of award.

25. QUESTION: Page 13: Invoice - Could the DLA clarify, in the event that an electric invoice is authorized, will three copies still be required of the awarded retail electric provider?

DLA ENERGY RESPONSE: One copy is sufficient, (See Page 10), C800 (b) “Under the authority of FAR 52.215-8 Order of Precedence, the Government’s explicit invoice and payment instructions are in C800 supersedes FAR 52.212-4(g) on page 13-14.

26. QUESTION: I801.01 ‐ Electricity Pricing for quantities outside established load bandwidth (pg 21). Please clarify or confirm that if the final agreement with the Government is structured as a No‐Settlement agreement, then the +/‐ 10% bandwidth described in subpart (a) will not apply.

DLA ENERGY RESPONSE: Pursuant to Section L, addenda to FAR 52.212-1 (3), offers have the option to submit pricing with or without the application of I801.

27. QUESTION: I821 ‐ Holdover Contract Line Item Number (pages 22‐23). Will the Holdover pricing apply beyond the 90 days stated in this section if the Government has not selected a new contractor for service beyond the 90-day holdover period? If not, then what pricing will apply?

DLA ENERGY RESPONSE: See answer to question 6.

28. QUESTION: Request clarification in SECTION B – SUPPLIES TO BE FURNISHED, B1.08 SUPPLIES TO BE FURNISHED (ELECTRICITY) (DLA ENERGY JAN 2012), TABLE 2: Supplies to be Furnished:

a. Please confirm that the Government does not expect RMR to be passed through on any CLINs.

DLA ENERGY RESPONSE: RMR is fixed for all CLINs.

b. For CLIN 0002, will the Government please confirm that Line Losses should be passed through and not included in the Transaction Fee? Section B, Table 2 does not identify Line Losses as a pass thru for that CLIN.

DLA ENERGY RESPONSE: See answer to question #2.

c. For CLIN 0002, will the Government please confirm that “retail service charges” is intended to include Ancillaries Services as defined by ERCOT?

DLA ENERGY RESPONSE: See Section B B1.08 (c) and refer to Table 2 (CLIN0002) to note specific pass-throughs.

d. For CLIN 0016, will the Government please confirm that Line Losses should be passed through and not included in the Supply Service Fee? Section B, Table 2 does not identify Line Losses as a pass thru for that CLIN.

DLA ENERGY RESPONSE: Clause B19.46, Subparagraph (b)(5) states that all charges for either transmission line losses or distribution line losses shall be a direct pass-through to the Government with no additional markup. Therefore, these charges shall not be included in the Supply Service Fee as defined in Paragraph (c).

29. QUESTION: Will the Government be requiring collateral for this solicitation? If so, what would be the requirements?

DLA ENERGY RESPONSE: No, there is no requirement for collateral for this solicitation.

30. QUESTION: Please confirm that the purchase of any additional blocks under Section B19.46(a).c (Solicitation page 7) will be subject to mutual agreement on the block prices. Will the requirement to provide at least three or four quotes, as stated in Section B19.46(a)(1) (Solicitation page 7), be applicable to additional blocks needed in the event of delay in the start of CHP operations?

DLA ENERGY RESPONSE: All block purchases shall be conducted in accordance with B19.46, to include the requirement to provide three (or four) quotes. The Government will accept or decline quotes as provided for in B19.46(a)(1)(iv). Each transaction will be formalized by contract modification. Should there be a delay to the CHP, the Government may modify the Block Purchase Schedule, as provided for in B19.46(a), to add additional blocks as necessary.

31. QUESTION: Section B19.46(a)(1) (Solicitation page 7) states that at least three price quotes for block purchases from third-party suppliers must be provided by the supplier. What will be the procedure if the supplier is unable to obtain three bona fide quotes from third party wholesale suppliers that are qualified to transact with the supplier? Such qualifications would include: the third party supplier’s willingness to transact under an agreement acceptable to the retail supplier, the third party supplier’s creditworthiness, whether that third party supplier will demand collateral, and the wholesale transaction with a third party wholesale supplier will not violate any counterparty position or exposure limits or otherwise violate the retail supplier’s risk policies. If such a third party supplier that provided a quote fails to meet those requirements, withdraws its quote, or otherwise fails to transact with the retail supplier, what procedure will be followed? Will the retail supplier be required or permitted to re-submit its quotes?

DLA ENERGY RESPONSE: The Government requires three (or four) executable quotes prior to locking in the price of any block. A quote from a third-party supplier with whom the supplier is unable or unwilling to establish a contract would not be considered executable. Should one of the three (or four) executable quotes be withdrawn by the third-party prior to execution, the Government will work with the supplier to obtain sufficient competition and may request refreshed quotes or reschedule the block purchase for another time.

32. QUESTION: Clause B19.46 (Solicitation page 8), relating to pricing for CLIN 0016 NASA JSC, states that Other Market Charges include transmission/distribution losses as a pass-through charge. What is DLA’s expectation as to how the charge or adjustment for losses will be calculated?

DLA ENERGY RESPONSE: Transmission and Distribution Line Losses are to calculated in a manner consistent with methodologies defined by ERCOT. Losses should be applied to the net metered volume as reported by the TDSP.

33. QUESTION: The Other Market Charges listed in Section B19.46 (Solicitation page 8) do not include hub to load zone basis, ancillary services, renewable portfolio standards, ISO fees, or congestion charges. Is it DLA’s intent that such cost components be included in the block prices or the Supply Service Fee? If they are included in the block prices, then the block prices will not match up with the third party quotes contemplated under Section B19.46(1)(iv) (Solicitation page 8).

DLA ENERGY RESPONSE: Clause B19.46, Paragraph (c) states that all charges not specifically addressed by Paragraph (a) Block Purchase Electricity or Paragraph (b) Other Market Charges shall be included in the Supply Service Fee. Paragraph (a)(1) defines the pricing point of the blocks as the ERCOT Houston Hub and does not provide for the inclusion of any additional charges in the block price beyond the quoted price accepted by the Government.

34. QUESTION: Section B19.46(a)(c) (Solicitation page 7) states that the NASA JSC CHP plant will begin testing in January 2016 and be fully on-line in April 2016. Are those accurate dates?

DLA ENERGY RESPONSE: Please refer to Amendment 0001. The correct dates are January 2017 and April 2017, respectively.

35. QUESTION: Can the DLA confirm the specific components in the Supplier Service Fee for the RTSPP and RTSPP + Block products?

DLA ENERGY RESPONSE: See response to Question 33.

36. QUESTION: B19.46(b) (5), regarding losses being passed thru for the RTSPP and RTSPP+Block products, what line loss % should suppliers use?

DLA ENERGY RESPONSE: See response to Question 32.

37. QUESTION: B19.46, Page 7/39 (a) Block Purchase a. references an invoice shall include the following a-b-c, would it be acceptable for the item (c) Supply Service Fee to be on an accessible invoice detail backing sheet vs. the invoice itself?

DLA ENERGY RESPONSE: See response to Question 35.

38. QUESTION: B19.46, Page 7/39 (a) b. references Blocks estimated to be 88% of load. Will a specific Block size be provided when NASA purchases a Block?

DLA ENERGY RESPONSE: Block sizes are provided in Solicitation Attachment VII – NASA JSC Block Purchase Schedule.

39. QUESTION: Section B19.46, part 2 (page 8). Is congestion a fixed cost on load above the block, given that the settlement point is Houston Hub?

DLA ENERGY RESPONSE: See response to Question 33. Charges defined in B19.46(b) Other Market Charges and B19.46(c) Supply Service Fee apply to the entire electricity consumption for each of the four ESIDs, regardless of whether Energy is priced at the block price or at ERCOT Houston Hub RTSPP in excess of the block volume.

40. QUESTION: Page 7: Block Purchase of Electricity - The solicitation indicates NASA JSC implemented a Combined Heat and Power (CHP) Plant fully on-line in April 2016, generating 11.9 MW total (2 x 5.7 MW gas turbines and a 500 Kw backpressure steam turbine). Could the DLA confirm this facility is currently operational? If not, when will the CHP plant be online and fully operational?

DLA ENERGY RESPONSE: See response to Question 34.

41. QUESTION: Request clarification in SECTION B – SUPPLIES TO BE FURNISHED, B19.46 BLOCK PURCHASES (ELECTRICITY) (DLA ENERGY JAN 2012)(a)c:

Will the Government please clarify when the CHP will be testing and fully on-line?

DLA ENERGY RESPONSE: See response to Question 34.

42. QUESTION: Request clarification in SECTION B – SUPPLIES TO BE FURNISHED, B19.46 BLOCK PURCHASES (ELECTRICITY) (DLA ENERGY JAN 2012)(a)b and (2) and (c):

1. Does the Government intend to hedge congestion via the Supply Service Fee for all contracted load (i.e., both block purchase quantities and quantities in excess of the block) for CLIN 0016 (which would be the result of including a cost for Zonal Congestion in the Supply Service Fee)?

Or

1. Does the Government want the block price to include the Zonal Congestion (i.e., Hub to Load Zone basis), with Excess and Deficiency adjustments calculated based on the Houston ERCOT Load Zone RTSPP as opposed to the ERCOT Houston Hub RTSPP (cf. SPE600-13-R-0407, Section C – Description/Specifications/Statement of Work, (3) Pricing for Quantities Outside Established Benchmark Quantities (B) and (C)) ?

DLA ENERGY RESPONSE: See response to Question 33.

43. QUESTION: Request clarification in SECTION B – SUPPLIES TO BE FURNISHED, B19.46 BLOCK PURCHASES (ELECTRICITY) (DLA ENERGY JAN 2012)(a)(1)(iii):

Will the Government clarify that by “on-peak”, they mean a block of electricity that covers electricity usage during peak hours, Monday – Friday, 5 days a week, 16 hours a day (5x16). Peak hours are 6 am CT through 10 pm CT, as defined by the Electric Reliability Council of Texas (ERCOT).

DLA ENERGY RESPONSE: Any reference to ‘peak hours’, ‘peak’, or ‘on-peak’ is intended to correspond with the ERCOT definition.

44. QUESTION: Request clarification in SECTION B – SUPPLIES TO BE FURNISHED, B19.46 BLOCK PURCHASES (ELECTRICITY) (DLA ENERGY JAN 2012)(c) SUPPLY SERVICE FEE:

Please confirm whether the Government expects to hedge the RTSPP Hub to Load Zone basis (i.e., include Zonal Congestion) in the Supply Service Fee.

DLA ENERGY RESPONSE: See response to Question 33.

END of Attachment A -- Questions & Answers