Attachment_III_A0003-_Questions_and_Answers.pdf

Request for Proposal (RFP) SPE600-16-R-0415-A0003 Attachment III A0003- Questions and Answers

Dated 11/8/2016

All questions were submitted by interested parties, and answered by the Government in response to Request for Proposal (RFP) SPE600-16-R-0415. Answers are incorporated into this RFP, and changes reflected in Amendment 0003 dated November 8, 2016, and ultimately incorporated into the resultant award.

1. Please confirm that costs associated with New York Transmission Owner Transmission (TOTS) Project Costs should be included in bid prices.

Answer: Yes. In accordance with the RFP, Section B, B1.08- Supplies to be Furnished, paragraph (e), the Firm Fixed Price shall include all retail supply costs to the point of receipt as specified in the solicitation. Furthermore, in accordance with I820- Electricity Regulatory Changes, paragraph (a), the contractor price shall include all applicable independent system operator/regional transmission organization/public utility commission (ISO/RTO/PUC) charges to be in effect and applicable to this contract at Government price acceptance at contract signing.

2. The solicitation does not address FERC Order 745 costs. Please clarify whether FERC

Order 745 costs should be passed through.

Answer: In accordance with the subject RFP, FERC Order 745 costs are not a pass through. See the terms in I820- Electricity Regulatory Changes for current, after-imposed, and after-relieved ISO/RTO/PUC charges.

The subject RFP does not identify FERC Order 745 as a pass-through. To date, it is the Government’s understanding that the New York ISO has not imposed FERC Order 745 costs on the Contractor and the costs are not in effect and applicable to this contract at Government price acceptance in accordance with I820- Electricity Regulatory Changes.

The Government refers the Contractor to I820 paragraph (b), which states, “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 60 calendar days 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.” Please also refer to I820 paragraph (e) for procedures to handle any after-imposed or after-relieved ISO/RTO/PUC charge. Price adjustments shall be accomplished via written modification to the contract.

3. Section B1.08(e)(i) states that bid prices shall include all costs attributed to meeting Renewable Portfolio Standards (RPS). Currently, RPS in New York is procured by NYSERDA through monies collected under delivery costs by the UDC. Retail suppliers are not currently responsible for RPS costs. Notwithstanding the foregoing, on August 1, 2016, the New York Public Service Commission issued the Order Adopting a Clean Energy Standard (Order). This order would require retail suppliers to procure from NYSERDA Renewable Energy Credits (RECs) effective January 2017 and Zero Emission Credits (ZECs) effective April 2017. The method and cost for NYSERDA to manage these clean energy standards, however, has not been finalized. As such, Supplier would like to clarify that:

a. Supplier’s bid prices shall not include costs associated with RPS as such costs are currently collected by the UDC;

Answer: See Amendment 0001 Conformed RFP. B1.08 subparagraph (e)i has been removed.

b. Costs associated with the Order, including RECs and ZECs, shall not be included in Supplier’s bid prices; and Answer: In accordance with I820(a), the contractor price shall include all applicable independent system operator/regional transmission organization/public utility commission (ISO/RTO/PUC) charges to be in effect at contract signing.

The Government hereby clarifies the method of collecting costs associated with New York Public Service Commission’s Order Adopting a Clean Energy Standard has not been finalized to date (11/8/16) therefore the effects of the charges cannot be reasonably anticipated by a Contractor prior to award and therefore qualify as an “after-imposed ISO/RTO/PUC” charge IAW I820 paragraph (b) and (d).

The Government further clarifies that if the charges and methodology are finalized prior to the Government’s price acceptance, those charges shall be accounted for in the Contractor’s offered price. It is the Contractor’s responsibility to know and understand which laws are in effect upon contract award and provide their final priced offer accordingly.

c. After costs associated with the Order are finalized, Supplier may pass through such costs to the Government in accordance with Section I820.

Answer: No. Any change that would be applicable under the I820 clause is not considered a ‘pass-through’; rather an equitable adjustment to the contract unit price that, when the proper notification and documents are received from DLA, then a bilateral modification is issued to permanently change the contract in the form of an equitable adjustment.

If costs are determined not to be in effect or applicable to transactions under this contract on the date the Government accepts pricing IAW I820 paragraph (b), the contractor shall not assume “passing through” the cost to the customer.

The Government refers the Contractor to I820 paragraph (b), which states, “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 60 calendar days 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.” Please also refer to I820 paragraph (e) for procedures to handle any after-imposed or after-relieved ISO/RTO/PUC charge. Price adjustments shall be accomplished via written modification to the contract.

4. Will the DLA allow for suppliers to pass thru new / unknown charges related to the NY PUCs ruling on zero emission credits?

Answer: DLA Energy will consider a change to the RFP terms when it is advantageous to the Government. See the terms in I820- Electricity Regulatory Changes for current, after-imposed, and after-relieved ISO/RTO/PUC charges, which are also addressed in answers to question 3b and 3c.

See the Government’s updated answers to 3b and 3c.

5. Will the DLA accept dual billing for all line items or is consolidated billing a hard requirement?

Answer: DLA Energy will consider a change to the RFP terms when it is advantageous to the Government. For this question, DLA Energy encourages submitting it as an exception with the proposal submission in accordance with Addenda to FAR 52.212-1, paragraph (4) EXCEPTIONS TO TERMS.