Attachment_III-_Questions_and_Answers.pdf

Request for Proposal (RFP) SPE600-16-R-0415-A0001 Attachment III- Questions and Answers

Dated 9/26/2016

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 0001 dated September 26, 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 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.

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.

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, Request for Proposal (RFP) SPE600-16-R-0415-A0001 Attachment III- Questions and Answers

Dated 9/26/2016 then a bilateral modification is issued to permanently change the contract in the form of an equitable adjustment.

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.

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.