20160310_DRAFT_Industry_PPC_Briefing_FJ.pptx

Fort Jackson, South Carolina

SPE600-16-R-0805 Electric & Natural Gas Industry Pre-Proposal Conference March 16, 2016 Vicki Warner, Contracting Officer DLA Energy - Utility Services Division

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Good morning, Welcome to the Industry Pre-Proposal conference.

This briefing covers the solicitation for the privatization of the Electric and Natural Gas systems at Fort Jackson, South Carolina.

Introductions – Contracting team:

Vicki Warner, Contracting Officer Tricia Castillo, Contract Specialist Nikki Hession, Contract Specialist Technical team lead, Jaime Garcia Price team lead, Jeba Asir

We are here today because the Army selected DLA Energy as its contracting center of excellence. We are tasked with cradle to grave contracting for Army Utility Privatization procurements.

Our intention today is to explain the process, the sections of the Request for Proposal posted in Fed Biz Opps and mention some shortfalls we, in DLA have come across from other offerors on other solicitations.

I’d like to keep an open dialogue format, rather than a lecture. Please feel free to ask questions throughout.

Agenda Purpose of the Request for Proposal (RFP) RFP Contents Review solicitation Sections B through M Milestones DLA Energy POCs

Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Agenda includes detailed discussion of:

The Purpose of the RFP RFP Contents Review of the solicitation (Sections B through M) Milestones DLA Energy POCs

Purpose of the RFP Privatize the Electric and Natural Gas Utility Systems at Fort Jackson, South Carolina (if economical)

Convey utility system infrastructure (separate from RFP) Acquire utility system infrastructure (FAR Part 41) Maximum 50 year contract Provide Right to Access/Easement

Notes:

1. Purchase of the commodity is not included in the RFP

2. Selection of offeror will be based on best-value tradeoff determination

3. Government reserves the right not to award the contract

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE The purpose of the RFP is to privatize the Electric and Natural Gas Systems at Fort Jackson, South Carolina (The Government will privatize only if it is ECONOMICAL) UP consists of two transactions:

1) The first is a decision by the Army to convey the utility system infrastructure to a qualified entity through a Bill of Sale (this decision is separate & distinct from the RFP).

2) The second is the acquisition of the utility service for the privatized system via a utility services contract.

The system is sold in “as is, where is” condition.

The contract will be awarded for a maximum of 50 years.

Right to Access (RTA)/Easement: Because the offeror will own property that is located upon and affixed to U.S. Government. owned real estate, the process also provides for the Offeror to be granted permission to access and maintain their property through a Right to Access (RTA)/Easement (determined by state law).

Notes:

The purchase of the commodity is not included in this solicitation.

Selection of offeror will be based on best-value tradeoff determination.

Government reserves the right not to award the contract.

RFP Contents Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Overview of RFP sections Sections will be reviewed in detail during this briefing (Section A = SF33/Cover Page)

B.2.1 Schedule B-1: Regulated Tariff Tariff must be fully and independently regulated (by a “State-Wide” public utility regulatory authority with jurisdiction over the Offeror) Terms must be no less favorable than those offered to similar customers Offerors are to provide:

Comprehensive description of the proposed tariffs Describe the regulatory process Complete Price Data Sheets 1 through 5 (see Section B.3) It is acceptable to submit proposal contingent upon regulatory approval, as long as a proposed timeframe for approval is provided Review Solicitation:

Section B – Services and Prices/Costs Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section – B.2.1 Schedule B-1: Regulated Tariff The solicitation allows for the submission of two different price structures – Regulated Tariff & Fixed Price with Economic Price Adjustment.

Schedule B-1 is for regulated entities proposing regulated tariff; they have to be fully and independently regulated by a STATE Commission; the FP w/EPA option is available to any business.

(Regulated entities may submit either way).

B.2.2 Schedule B-2: Fixed Price Economic Price Adjustment (EPA) Inclusive monthly utility service charge (includes Operations & Maintenance (O&M) and Renewals & Replacements (R&R)) Prices are adjusted annually IAW Index Adjustment based on Bureau of Labor Statistics (BLS) Consumer Price Index Urban Regional Adjustments applicable to monthly utility services charge only May submit alternate proposal utilizing different Government published index or multiple indices or take exception to RFP Offeror bears risk of unacceptability Complete Price Data Sheets 1 through 4, and 6 (see Section B.3)

Review Solicitation:

Section B – Services and Prices/Costs Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - B.2.2 Schedule B-2: Fixed Price Economic Price Adjustment (EPA) Schedule B-2 is for Non-Regulated Entities and regulated entities not proposing a tariff.

Prices will be adjusted annually using the specified index in the solicitation or one proposed by the offeror.

If Offeror provides an alternate index, however, the alternate proposal may bear the risk of a high risk rating.

Annual adjustment is only applicable to the monthly service charge.

C.1 Precedence FAR 52.215-8: any inconsistency in this solicitation shall be resolved by giving precedence in the following order:

The schedule (excluding the specifications).

Representations and other instructions.

Contract clauses and contract clauses included by reference.

Other documents, exhibits, and attachments.

The specifications.

Review Solicitation:

Section C – Description/ Specifications/Work Statement Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section – C.1 Precedence FAR 52.215-8 provides instruction on resolving any inconsistency in this solicitation by giving precedence in the following order:

The schedule (excluding the specifications).

Representations and other instructions.

Contract clauses.

Other documents, exhibits, and attachments.

The specifications.

C.3 Requirement Contains general requirements applicable to the system Performance standards: Required to adhere to specified industry standards C.6 Access to the Utility System The Government:

Provides a Right to Access/Easement to the Installation and the utility system May restrict who, when and how many may have access to the secure areas of the Installation May require background investigations, including security clearances The Offeror is responsible for the actions of its employees, sub-contractors, and agents while on the Installation Review Solicitation:

Section C – Description/ Specifications/Work Statement Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section C.3 – Requirement This section contains the Requirements/Scope of Work and Performance Standards.

The Offeror will furnish all necessary labor, management, supervision, permits, licenses, certifications, equipment, supplies, materials, transportation, and any other incidental items or services required for the complete ownership of and provision of the utility service via the utility system; including operation, maintenance, repair, upgrades, and improvement of the system.

Section C.6 – Access to the Utility System This section discusses access to the utility system.

The Government provides a Right to Access/Easement to the Installation and the utility system.

They reserve the right to restrict who, when and how many people may have access to the secure areas of the Installation; keeping in mind this may require background investigations, including security clearances.

The Offeror is responsible for the actions of its employees, sub-contractors an agents while on the Installation.

C.7 Response to Service Interruptions/ Contingencies and Catastrophes Procedures and provisions for handling service interruptions in the Service Interruption/Contingency and Catastrophic Loss Plan C.8 Repair Response Procedures Offeror shall provide local or toll free telephone number, available 24 hours a day, 7 days a week for service requests Offeror shall respond accordingly depending on the type of request Types of Service Requests & Response Times Emergency (Life or Death): Immediately Priority 1 - Emergency (Not Life or Death): Within 30 minutes Priority 2 - Urgent: Within 24 hours Priority 3 - Routine: Within 5 calendar days Review Solicitation:

Section C – Description/ Specifications/Work Statement Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section C.7 – Response to Service Interruptions/Contingencies and Catastrophes Describes how the Offeror shall employ sound utility practices to ensure continuous, dependable and reliable utility service and to minimize the scope and length of any service disruption.

The Offeror shall develop and maintain a plan that shall define procedures and provisions for reacting to all service interruptions to the system.

The Installation’s specific requirements for coordination of work is included in Attachments JA1 and JA2.

The Offeror will be required to coordinate any work with the Installation and any other entities required to accomplish the work.

Regulated Utilities need to follow their local procedures similar to other customers.

Section C.8 – Repair Response Procedures Designates the Installation’s requirement for repair and response procedures.

The Offeror shall provide a local or toll free telephone number, that is available 24 hours a day, 7 days a week for service requests.

The Offeror shall respond accordingly depending on the type of request.

Types of Service Requests & Response Times:

Emergency (Life or Death):

These types of emergencies will typically be handled by Fort Jackson Emergency Response agencies, like the Military Police or Fire Department. These agencies or the Department of Public Works (DPW) will contact the offeror.

The offeror shall respond immediately upon notification and work shall be continued until the problem is corrected or downgraded.

Priority 1-Emergency (Not Life of Death):

The Offeror shall respond to Priority 1 requests within 30 minutes of notification during duty hours and within one (1) hour of notification during non-duty hours; appropriately trained repair crews to eliminate the condition shall be at the emergency site within two (2) hours.

Priority 2-Urgent:

The Offeror shall respond to Priority 2 requests within 24 hours.

All urgent requests will be remedied within five (5) business days unless there is a delay from the Government or the Offeror cannot procure the material.

Priority 3-Routine:

The Offeror shall respond to Priority 3 requests within 5 calendar days. The Offeror shall complete the service orders within 30 calendar days unless there is a delay from the Government or the Offeror cannot procure the material.

C.9 Coordination of Work The Offeror shall coordinate with the Contracting Officer’s Representative (COR) at least two (2) weeks prior to commencing work

C.10 Environmental Compliance The Offeror shall comply with all applicable environmental laws and regulations inclusive of all Federal, State, and local laws as well as Installation-specific requirements

Review Solicitation:

Section C – Description/ Specifications/Work Statement Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section C.9 – Coordination of Work The Offeror shall coordinate with the Contracting Officers Representative (COR) at least two (2) weeks in advance prior to commencing work.

New System Owner:

Will provide essential labor, management, supervision, permits, equipment, supplies, materials, transportation, and any other incidental items or services required for the complete ownership of and provision of utility services via the utility systems, including operation, maintenance, repair, upgrades, and improvement of the systems.

Section C.10 – Environmental Compliance The Offeror must comply with all Federal, State, and local laws as well as Installation-specific requirements (Attachments JA1 and JA2 identifies these requirements).

Source Selection Information – See FAR 2.101 and 3.104

C.11 SDCs / Upgrades / Connections and Renewals and Replacements Initial System Deficiency Corrections (ISDCs)/Connection Charges Necessary investments to ensure compliance with applicable laws, regulations or implementation of new technology Future System Deficiency Corrections (FSDCs)/Upgrades Required to comply with requirements and standards imposed by law that have changed during the contract term will be paid subject to the availability of funds Submitted under annual system deficiency corrections/upgrades and renewals and replacements plan Renewals and Replacements Investments in the utility system to renew or replace system components that fail or reach the end of their useful life Review Solicitation:

Section C – Description/ Specifications/Work Statement

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section C.11 – System Deficiency Corrections/Upgrades/Connections and Renewals and Replacements ISDCs- Projects such as upgrades/connections necessary to raise the system to industry standards (identified in Section JA2) Additional ISDCs may be identified by the Government or Offeror.

Must be addressed within the first 5 years from the contract start date.

FSDCs – investments in the utility system proposed by the Offeror in its Annual Plan, which is a 5 year plan submitted annually after the first full year of the period of performance.

Examples include R&R projects, upgrades to the system as result of changes in requirements or regulations.

The Government reserves the right to determine if any of the projects will be funded (unless it’s a newly imposed regulation).

Note: Currently, Attachment JA1 lists 15 recognized system deficiencies identified by the Government that will need to be addressed by the Offerors in their proposal. JA2 lists 6 recognized system deficiencies identified by the Government.

R & R Plan- 50 YR schedule Conceptual Methodology for Scheduling Renewals & Replacements of system components.

Inventory (Attachment JA2) will call out the year each asset was installed and its design life.

Dollars will be allocated based on design life, inflated and calculated into a monthly service charge.

C.12 Operations and Maintenance/Quality Management Plan Establish and adhere to an Operation and Maintenance/Quality Management Plan to ensure safe and reliable operation of the system Consistent with all applicable laws/regulations/requirements of utility-specific Attachments JA1 and JA2 C.13 Operational Transition Plan Describes strategy to transfer the utility system from Government Ensures continuous and uninterrupted service Offeror proposes how long the transition period will last Includes detailed joint inventory of facilities, specialized equipment, manuals, and records Review Solicitation:

Section C – Description/ Specifications/Work Statement Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section C.12 – Operations and Maintenance/Quality Management Plan The Offeror shall establish and maintain an Operation and Maintenance/Quality Management Plan.

The Plan shall ensure the provision of reliable, cost-effective, and compliant service over the term of the contract.

The Offeror shall update the Plan as necessary and adhere to its requirements throughout the contract term.

It shall not be materially altered without the Government’s consent.

Section C.13 – Operational Transition Plan The operational transition plan describes how the offeror plans to perform the transfer without interruption of the services.

A joint inventory must be completed prior to the end date of the transition period.

The Offeror must propose how long the transition period will last.

Section E – Inspection and Acceptance FAR 52.246-4: Inspection of Services—Fixed Price Section F – Deliveries or Performance Utility Service Contract Term – maximum of 50 years

Review Solicitation

(Performance Period) Contractor proposes duration of Transition Period; Transition Period begins upon execution of contract award unless a later date is specified. Transition Period ends with the conveyance of the Utility System Infrastructure and Performance of the Utility Services Contract begins.

Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section E– Inspection and Acceptance The Government has the right to inspect any goods/services. This clause is not applicable to regulated tariff offerors who propose with Schedule B-1 .

Section F– Deliveries or Performance Here is a visual of the process…

Phase 1 (transition period) begins at contract award. It can vary & precedes the actual contract start date. Depending on the system, the transition period could be as short as 3 months, but usually doesn’t exceed a year.

Phase 2, the utility services contract performance, is triggered by the Bill of Sale. (This is when the utility service contract begins) The 50 year period will start when the contract is signed but Phase II does not start until after the transition period ends and the system is conveyed.

Contract award Transition period begins Transition period ends Conveyance of the system is completed with Bill of Sale Contract performance begins

Section G – Contract Administration Data Contracting Officer’s Representative (COR) Submission & Payment of Invoices through WAWF Price Adjustments Accounting Procedures Accounting and Appropriation Data Section H – Special Contract Requirements Insurance Requirements Government Repurchase Option – non-negotiable Hazardous Substances Must comply with all applicable laws and regulations Contribution in Aid of Construction (CIAC) Tax Liability Differing Site Conditions Disposition at Contract Expiration Review Solicitation Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Sections G – Contract Administration Data DFAR’s Clause authorizes the Government to designate a representative (Contracting Officer’s Representative- COR) to perform technical and administrative functions.

Invoices shall be submitted electronically on a monthly basis through WAWF.

Price adjustments apply only to CLIN 0001 and will be adjusted IAW EPA Clause included in the solicitation or the specified tariff provided. Other adjustments resulting from changes in the service requirements will be adjusted IAW with the Changes clause.

Accounting Procedures should be IAW the Offerors established practices for measuring, assigning, and allocating costs.

Section H – Special Contract Requirements Insurance is required upon execution of the contract and 30 days prior to expiration.

Government Repurchase Option is a non-negotiable clause. The Government reserves the right to repurchase the systems at the end of the contract term or if terminated by convenience or default.

Hazardous Substances – must comply with all safety and health laws and regulations on handling and storing hazardous materials.

CIAC – If proposed purchase price is less than fair market value, the difference may be treated as CIAC and taxable income to the Offeror. It is the Offerors responsibility to perform the necessary research and determine the fair market value so there is no CIAC tax liability to the Government.

Differing site conditions – the Offeror will be required to give written notice to the contracting officer of any unknown conditions.

At least one (1) year prior to the end of the contract, the Parties should begin discussions concerning disposition at contract expiration.

Section I – Contract Clauses Federal Acquisition Regulations (FAR) Clauses Incorporated by Reference (IBR) (Section I.2) Defense FAR Supplement (DFARS) IBR (Section I.3) Utility Services Clauses IBR (Section I.4) Clauses IBR: for Non-Regulated Utilities and Regulated Utilities Offering Non-Tariff Rates (Section I.5) Clauses IBR: Construction Wage Rates Requirements (Section I.6) Other Clauses (Section I.7) Review Solicitation Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section I – Contract Clauses This section contains all the clauses (either incorporated by reference or full text) A lot of this is done in a table format and includes FAR (federal regulations), DFAR (DoD regulations) and DLAD (DLA regulations).

The solicitation is written to cover both regulated and FP w/ EPA offers.

The award shall be written only to show the applicable clauses.

While this is not a construction contract, the Dept. of Labor asks us to include Davis Bacon Act for wages.

Section J – List of Attachments, Exhibits and References Attachment JA1 Fort Jackson Electric Distribution System Attachment JA2 Fort Jackson Natural Gas Distribution System Other Attachments Federal Equivalents (JA38) Past Performance Information (JA39) Example Completion of Schedules for FP-EPA Type Contracts (JA40) Wage Determinations (JA41) B Schedules and Price Data Sheets (JA42) Reserved (JA43) Quality Assurance Surveillance Plan (QASP) (JA44) Subcontracting Plan (JA45) Sample contract Table (JA46) Reference Documents Sample Bill of Sale (JR1) and Technical Evaluation Categories (JR2) Review Solicitation Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section J – List of Attachments, Exhibits and References Attachments JA1 and JA2 provide a description of the Installation and the utility system to be privatized, it also specifies the system inventory in detail.

The other attachments identify the specific service requirements of the Installation and the current service arrangements.

Section K – Representations, Certifications & Other Statements of Offerors Identifies the North American Industry Classification System (NAICS) 221122 Electric Distribution Small Business size standards for NAICS is 1,000 employees 221210 Natural Gas Distribution Small Business size standards for NAICS is 1,000 employees

System for Award Management (SAM) registration done online Offeror completes annual representations and certifications electronically via the SAM website

Review Solicitation Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section K – Representations, Certifications & Other Statements of Offerors Identifies the North American Industry Classification System (NAICS) size standards.

Informs the Offeror that they a re required to register in SAM to complete their annual representations and certifications electronically.

The size standards for the Natural Gas Distribution Systems has changed in the Federal Registry. In which case, an amendment to the solicitation will be issued changing the size standard from 500 to 1,000 employees once the new size standard is implemented on February 26, 2016.

L.2 Information to Offerors Site Visit (L.2.1.6) Initial Site Visit: March 17, 2016, 0800 EST Additional site visits may be available upon request Send request to Contracting Officer with desired dates/times Should provide advance notice and alternate dates

Technical Library (L.2.1.7) Available on FBO Offerors bear responsibility for conducting due diligence when researching applicable and current laws and policies Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section L - Instructions, Conditions, and Notices to Offerors This section provides Instructions to the Offerors on the site visits, technical library & instructions on how to prepare their proposal.

The initial site visit is scheduled for February 25 for those offerors who wish to tour the existing system.

Should additional site visits be needed, please send a request to the Contracting Officer, listing the date(s) and time(s) desired for another visit. Efforts will be made to accommodate the dates/times requested but please be flexible as there are several parties that need to be engaged to facilitate the request (such as visit duration restrictions, escort requirements and Installation access requirements)

Technical Library information includes maps and technical data specific to the system and Installation; it is available on FBO. No disks will be provided with this information.

However, the Offerors bears the responsibility to conduct their due diligence when researching applicable and current laws and policies.

L.3 Proposal Preparation Instructions - General

Volume I—Technical…………………... Maximum 200 Pages (per system) Volume II—Past Performance….……... Maximum 50 Pages (per system) Volume III—Contract Documentation …..………... No Limit Volume IV—Price……………………………………... No Limit

The proposal shall not simply restate or rephrase the Government’s requirements, but provide convincing rationale explaining how the Offeror intends to meet these requirements

Each volume shall be written on a stand-alone basis so that its contents may be evaluated without cross-referencing Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.3 Proposal Preparation Instructions – General This section of the RFP provides general guidance and specific instructions on the format and content of the proposal

Volume I is the technical proposal and it is limited to 200 pages (per system).

Volume II are the past performance references and should be limited to 50 pages (per system).

Volume III contains contract documentation, it does not have a page limit.

Volume IV is the actual price proposal, it does not have a page limit.

The proposal shall not simply restate or rephrase the Government’s requirements, but rather provide a convincing rationale explaining how the offeror intends to meet these requirements Each volume shall be written on a stand-alone basis so that its contents may be evaluated without cross-referencing

L.3 Proposal Preparation Instructions - General (continued) Offerors must submit separate price and technical proposal volume Offerors shall submit their electronic proposals on CD-ROM or DVD disks Each proposal shall contain five (5) disks:

Volumes I, III, and IV shall be submitted together on four (4) of the disks Volume II shall be submitted on a separate disk No password-protected, zipped, or self-extracting files shall be used Offerors shall provide certified and virus-free disks Offerors are reminded that restrictive legends will only be given effect if and to the extent that they appear on all copies submitted

Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.3 Proposal Preparation Instructions – General (continued) Offerors must submit a separate price and technical proposal volume and explain each in detail.

Offerors shall submit their electronic proposals on CD-ROM or DVD disks.

Each proposal shall contain five (5) disks.

Volumes I, III, and IV shall be submitted together on four (4) of the disks.

Volume II shall be submitted on a separate disk.

No password-protected, zipped, or self-extracting files shall be used.

Offerors shall provide certified, virus-free disks.

Offerors are reminded that restrictive legends will only be given effect if and to the extent that they appear on all copies submitted.

L.4 Proposal Preparation Instructions – Volume I: Technical Proposal Technical proposal shall describe the Offerors capability to provide level of utility services required by this solicitation It should be specific and complete in every detail The technical proposal shall specifically address each of the four (4) Technical Capability subfactors:

Service Interruption/Contingency and Catastrophic Loss Plan Operations and Maintenance Plan/Quality Management Plan Initial System Deficiency Corrections/Upgrades/Connections/ Renewals and Replacements Plan Operational Transition Plan

Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.4 Proposal Preparation Instructions – Volume I: Technical Proposal The Technical Proposal Volume shall describe the Offerors capability to provide level of utility services required by this solicitation It should be specific and complete in every detail; Offerors shall base their proposals on the inventory listed in the utility-specific attachment.

The four (4) Technical Capability subfactors are:

Service Interruption/Contingency and Catastrophic Loss Plan Operations and Maintenance/Quality Management Plan Initial System Deficiency Corrections/Upgrades/Connections/ Renewals and Replacements Plan Operational Transition Plan

L.4.1 Subfactor 1: Service Interruption/Contingency and Catastrophic Loss Plan Purpose: To describe procedures and provisions for responding to all service interruptions, capability to respond to emergency, urgent, and routine service calls and catastrophic loss Common Proposal Shortfalls Not complying with response/completion times Not complying with Installation’s excavation permit process and emergency restoration plan Not allowing the installation to reschedule routine outages if they adversely affect mission/operations Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.4.1 Subfactor 1: Service Interruption/Contingency and Catastrophic Loss Plan The Offeror must describe procedures and provisions for responding to all service interruptions, capability to respond to emergency, urgent, routine and catastrophic loss service calls and catastrophic loss

In RED font are some of the shortfalls that have been encountered by other offerors on other solicitations.

Note: Regulated utilities who have submitted similar documents to their Regulatory Commission may submit those documents in lieu of a requested plan.

L.4.2 Subfactor 2: Operations and Maintenance/Quality Management Plan Purpose: To identify Offerors’ policies, practices & procedures for:

Performance standards on Operations & Maintenance (O&M) Quality management The Plan will be incorporated into the contract at time of award Common Proposal Shortfalls Not addressing service standards for each line Item in Table L-1 of Section L.4.2.1 Not addressing the procedures Offerors use (tests, inspections, etc.) to ensure compliance with the service standards for each line Item in Table L-1 of Section L.4.2.1

Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.4.2 Subfactor 2: Operations and Maintenance/Quality Management Plan The plan shall be divided into two (2) sections; the purpose of the plan is to identify an Offerors policies, practices & procedures for:

Performance standards on Operations & Maintenance Quality management The Plan will be incorporated into the contract at time of award.

In RED font are some of the shortfalls that have been encountered by other offerors on other solicitations.

Note: Regulated Utilities who have submitted similar documents to their Regulatory Commission may submit those documents in lieu of the specifically requested information in this section.

However, if the regulated utility chooses that option, it remains the responsibility of the regulated utility to clearly demonstrate how all of the applicable Government requirements will be addressed.

L.4.3 Subfactor 3: Initial System Deficiency Corrections/Upgrades/Connections and Renewals and Replacements Plan Purpose: To describe in detail the purpose, scope, and cost of the ISDCs along with detailed description of procedures for identifying, financing, and scheduling these items Plan will be incorporated into the contract at time of award Common Proposal Shortfalls Not providing an Initial 5-Year plan; Not addressing the Government’s recognized system deficiencies in the 5-Year plan Not providing a year-by-year, 50-year plan for Renewals & Replacements Not providing a Price Data Sheet 2 without prices in the technical volume Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.4.3 Subfactor 3: Initial System Deficiency Corrections/Upgrades/Connections and Renewals and Replacements Plan The purpose of this plan is to describe in detail the purpose, scope, and cost of the ISDCs along with detailed description of procedures for identifying, financing, and scheduling these items This Plan will be incorporated into the contract at time of award.

In RED font are some of the shortfalls that have been encountered by other offerors on other solicitations.

L.4.4 Subfactor 4: Operational Transition Plan Purpose: Plan shall propose an adequate transition period and schedule for turnover from Government to Offeror The plan must discuss any system condition that will require the Offeror to accomplish work in advance of conveyance and include such work as a transition project Common Proposal Shortfalls Not Identifying the person(s) authorized to sign for the transfer of Inventory Not Indicating when the joint inventory will occur

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.4.4 Subfactor 4: Operational Transition Plan The purpose of the operational transition plan is to propose an adequate transition period and schedule for turnover from Government to Offeror The Plan must discuss any system condition that will require the offeror to accomplish work in advance of conveyance and include such work as a transition project

In RED font are some of the shortfalls that have been encountered by other offerors on other solicitations.

L.5 Proposal Preparation Instructions – Volume II: Past Performance Purpose: Offerors shall submit past performance information As shown on Attachment JA39, Past Performance Information References should be for at least two (2) but not more than six (6) of largest customers Work performed should:

Be of similar complexity and type Be for work performed for at least one (1) year of continuous duration Be within last five (5) years

Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.5 Proposal Preparation Instructions – Volume II: Past Performance The purpose of this volume if for Offerors to provide past performance information Found on Attachment JA39, Past Performance Information References should be for at least two (2) but not more than six (6) of largest customers

Work performed should:

Be of similar complexity and type Be for work performed for at least one (1) year of continuous duration Be within last five (5) years

L.5 Proposal Preparation Instructions – Volume II: Past Performance continued Offerors shall provide a list of system acquisitions in last five (5) years that includes, at a minimum:

Name of acquisition or project Brief description of Offeror or sub-contractor Total contract value Period of performance Principal parties involved, phone numbers and e-mail addresses Be of similar scope, magnitude, and complexity to the Government requirement.

Offerors need not duplicate information provided in Attachment JA39

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.5 Proposal Preparation Instructions – Volume II: Past Performance continued Offerors shall also provide a list of all system acquisitions in the last five (5) years and/or all contracts and subcontracts currently in progress.

They should be of similar scope, magnitude, and complexity to the Government requirement.

Offerors need not duplicate information provided in Attachment JA39.

L.5 Proposal Preparation Instructions – Volume II: Past Performance continued Provide written statement on status with regulatory authority to include:

Name of authority Address/telephone Point of contact Discussion of any violations, penalties, or other enforcement actions taken within last five (5) years Common Proposal Shortfalls Inability to locate/contact references Phone numbers and e-mail addresses are incorrect Irrelevant references

Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.5 Proposal Preparation Instructions – Volume II: Past Performance continued The Offeror shall provide a written statement concerning its status with any independent Federal, state, or local regulatory authority with jurisdiction over the utility service for which the offeror is proposing.

The statement must include discussion on any violations, penalties, or other enforcement actions taken against the offeror within the last five (5) years.

Note: The Government may use information gained from any source known to the Government to evaluate past performance, provided such information is recent (within the past five (5) years).

In RED font are some of the shortfalls that have been encountered by other offerors on other solicitations.

L.6 Proposal Preparation Instructions – Volume III - Contract Documentation Offeror must include original signed and dated SF-33 Acknowledge all amendments Representations and Certifications Completed on-line with electronic copy in Volume III Complete CAS Notices and Certifications (FAR 52.230-1) provided in Section K For Offerors subject to CAS or statement citing exemption CAS Waiver Applicability must include justification

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.6 Proposal Preparation Instructions – Volume III - Contract Documentation Offerors must include the signed and dated SF 33 and all amendments Offerors are required to provide all the information IAW FAR 52.204-8, in Section K (to include a copy of their representations and certifications; must also be current in SAMs.

Complete CAS notices and certifications provided in Section K for offerors subject to CAS or a statement citing exemption; CAS Waiver Applicability must include justification.

L.6 Proposal Preparation Instructions – Volume III - Contract Documentation continued FAR 31 Deviation Request Include in initial proposal Exceptions to Terms and Conditions (Matrix IAW L.6.2) Other Required Information List of authorized personnel who can obligate Offeror contractually Submit subcontracting plan (Other Than Small Business) Include realistic goals Submit socioeconomic plan All Offerors must submit Are required to address all criterial listed in Section L.6.3.5 of RFP Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.6 Proposal Preparation Instructions – Volume III - Contract Documentation continued Offeror must include in initial proposal any FAR 31 Deviation from Contract Cost Principles request (if applicable).

If an Offeror is taking an exception to the terms and conditions of the solicitation, it must be included in this volume and must follow the matrix shown in Section L.6.2.

Offerors are required to provide the items listed under Other Require Information:

List of authorized personnel who can obligate offeror contractually Subcontracting plan shall include realistic goals based on prior subcontracting performance and work that will be performed under any contract resulting from this solicitation Socioeconomic Plan shall demonstrates an Offerors commitment to providing subcontracting opportunities to: small, small disadvantaged businesses, women-owned small businesses, and/or historically black colleges or universities and minority institutions

L.7 Proposal Preparation Instructions – Volume IV: Price Proposal Offerors shall submit a single Schedule B (B-1 or B-2) Volume IV shall consist of the following sections:

Section 1: Schedule B-1 with completed Price Data Sheets 1 – 5 or Schedule B-2 with completed Price Data Sheets 1 – 4 and 6 Offeror shall include documentation to support all price data sheets With no hard-coding of data and not password-protected Section 2: Introduction, price, price proposal and pricing assumptions Section 3: Accounting system, standard estimating methodology

Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.7 Proposal Preparation Instructions – Volume IV: Price Proposal Offerors shall submit a single Schedule B (B-1 or B-2) Volume IV shall include documentation to support the price data sheet(s) in the proposal, with no hard-coding of data and not password-protected It shall also include Introduction, price, price proposal and pricing assumptions and accounting system, standard estimating methodology

L.7.6 Schedule B-1 – Regulated Tariff(s) CLIN 0001: Utility services charge Applicable tariff Monthly credit (as payment) for purchase price Number of months and interest rate Recoverable portion of purchase price Number of months and interest rate CLIN 0002: ISDC/Upgrades/Connection Charges For non-recurring costs to bring system up to standards Price for each ISDC is firm fixed price CLIN 0003: Transition Period Fixed-price payment Price Data Sheets 1-5 Review Solicitation: Section L – Instructions, Conditions, and Notices to Offerors Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.7.6 Schedule B-1 – Regulated Tariff(s) If tariff is proposed, Offeror must submit a comprehensive description of the tariff in volume 4.

The monthly charge will be the applicable tariff less the monthly credit as payment for the purchase price plus the recoverable portion of the purchase price.

CLIN 0002 is created for the non-recurring costs to bring the system up to standards. The price for each ISDCs is firm fixed price and it can be amortized if beneficial to the Government. However, the Government may make a lump sum payment for any or all capital investment costs that would normally be recovered through CLIN 0002 (Section L.7.6.4.)

CLIN 0003 is a one time payment for the transition period. The price is firm fixed price. The Government agrees to pay for the transition period using the method proposed by the offeror and accepted by the Government (Section L.7.6.5.)

Review Solicitation: Sample of a Schedule B-1 Regulated Tariff a Utility system to be filled in by the Offeror. A Schedule B-1 must be completed for the utility system offered, except as specifically stated in Section L. The utility system is shown in paragraph B.1, System to be Privatized. Offerors shall provide a comprehensive description of proposed tariffs in their Price Proposals.

b CLIN 0002 is required only if the tariff provides for separate identification of initial system deficiency corrections and connection charges. If separate identification is not provided, it will be assumed the tariff rate includes these costs.

Source Selection Information – See FAR 2.101 and 3.104

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Here is a sample of Schedule B-1

Note: This CLIN is required only if the tariff provides for separate identification of ISDCs and connection charges.

L.7.7 Schedule B-2 – Fixed Price with EPA CLIN 0001: Utility service charge (monthly charges for O&M/R&R) Monthly credit as payment for purchase price Number of months and interest rate Recoverable portion of purchase price Number of months and interest rate CLIN 0002: ISDCs/Upgrades/Connection Charges For non-recurring costs to bring system up to standards Price for each ISDC is firm fixed price CLIN 0003: Transition Period Fixed-price payment Price Data Sheets 1-4 and 6

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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section - L.7.7 Schedule B-2 – Fixed Price with EPA CLIN 0001 is a fully built up monthly charge, meaning it shall include the utility service charge for provision of utility services, to include the operations & maintenance and renewals and replacements prices (as shown in Price Data Sheets 1 and 2.)

Prices identified in Price Data Sheets 1 and 2 will be based on expected price levels during the 1st period of performance. The price will then be adjusted annually using the proposed index.

CLIN 0002 is created for the non-recurring costs to bring the system up to standards. The price for each ISDCs is firm fixed price and it can be amortized if beneficial to the Government. However, the Government may make a lump sum payment for any or all capital investment costs that would normally be recovered through CLIN 0002 (Section L.7.7.4.)

CLIN 0003 is a one time payment for the transition period. The price is firm fixed price. The Government agrees to pay for the Transition Period using the method proposed by the offeror and accepted by the Government. (Section L.7.7.5) a Utility system to be filled in by the Offeror.