Amendment_0002_SPE60017R0406.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NO.

4. REQUISITION/PURCHASE REQ. NO.

See Block 14

5. PROJECT NO. (If applicable)

6. ISSUED BY CODE SPE600 7. ADMINISTERED BY (If other than Item 6) CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

CODE FACILITY CODE

SPE60017R0406

X

2017 SEP 14

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of OffersX is extended, X is not extended.

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

12. ACCOUNTING AND APPROPRIATION DATA (If required)

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO.

IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc. ) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A NAME AND TITLE OF SIGNER (Type or print)

NSN 7540-01-152-8070

Previous edition unusable

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

16B. UNITED STATES OF AMERICA15B. CONTRACTOR/OFFEROR

(Signature of Contracting Officer)(Signature of person authorized to sign)

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

(a) By completing Items 8 and 15, and returning

DLA ENERGY

8725 JOHN J KINGMAN RD STE 4950

FT BELVOIR VA 22060-6222

USA

15C. DATE SIGNED 16C. DATE SIGNED

D. OTHER (Specify type of modification and authority)

3. EFFECTIVE DATE

12/21/2017

See Attached Continuation Sheet(s).

(X)

CHECK ONE

9A. AMENDMENT OF SOLICITATION NO.

9B. DATED (SEE ITEM 11)

13. THIS APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

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SPE60017R0406 - 0002

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The following changes are hereby made to the solicitation:

Section B – Supplies or Services and Prices/Costs

1. B1.08-2, Note 1, I, has been updated to reflect account number 5977820623.

2. B19.46(c), Note, has been removed in its entirety.

3. B19.46(c), Note 1, has been updated to remove the phrase “an RFP process or other.”

4. B19.46, Note 2 has been updated to replace the language “Day-ahead” with “Real-time.”

Section C - Description/Specifications/Statement of Work

5. Text C804(b), Invoice and Payment, has been updated to remove the following language:

Contractor shall also provide to DLA Energy, on a quarterly basis, the calculation of the reconciliation charge applicable to invoices for the following quarter. This document shall be sufficiently detailed to facilitate DLA Energy review and verification.

6. Text C804(j), PJM Sub-Accounts, has been updated to reflect the addition of a note.

Section I – Contract Clauses

7. 52.212-5 contract Terms and Conditions Required to Implement Statutes or Executive Orders – Commercial Items, has been updated to reflect the most current version, November 2017.

Section J – List of Documents, Exhibits, and Other Attachments

8. Attachment II – Experience with End Users_Amendment 0002, has been updated.

9. Attachment III – Installation Data Sheet_Amendment 0002, has been updated to correct the account number for Pittsburgh Air Reserve.

Section K – Representations, Certifications, and Other Statements of Offerors, or Respondents

10. 52.212-3, Offeror Representations and Certifications – Commercial Items, has been updated to reflect the most current version, November 2017.

Section L – Instructions, Conditions, and Notices to Offerors or Respondents

11. 52.212-1(c), Period for acceptance of offerors, has been tailored to reflect 10 business days.

12. All changes to the solicitation have been highlighted in yellow.

Below is a list of Questions received from interested parties in response to the solicitation and the corresponding Government Answers to each:

1. B19.46 states that all settlements for excess or deficiency are to be settled at the applicable UDC zone, what about the rest?

RESPONSE: All energy (Benchmark Quantity, Electricity Deficiency, and Excess Electricity) is settled at the applicable UDC zone; blocks are purchased at the PJM West Hub. Energy blocks are delivered at the PJM West Hub at the block purchase price.

2. Can you please provide the link where PJM defines Settlement Period? Or, define Settlement Period?

RESPONSE: “Settlement Period” is not a PJM-defined term. Currently, PJM settles all energy and ancillary services transactions on an hourly basis. However, in its effort to comply with FERC Order No. 825, PJM is proposing to define two new terms: “Real-time Settlement Interval” and “Day-ahead Settlement Interval.” Under the new construct, PJM will settle transactions in the Real-time Energy Market and the Regulation, Synchronized Reserves, and Non-Synchronized Reserves markets on a 5-minute basis. Introduction of the term “Settlement Period” in the Solicitation is designed to capture these changes in the way PJM is proposing to change the way it settles transactions. For more information on these proposed changes, please see PJM’s Order No. 825 Compliance Filing in the link below:

http://www.pjm.com/directory/etariff/FercDockets/2071/20170111-er17-775-000.pdf

3. Please verify the following for accuracy:

In a sub-account structure all components associated with the supply and transmission of electricity are passed through in accordance with PJM’s invoicing process. To be clear, the Contractor’s Supply Service Fee will not include any component costs as they will all be passed through on the Government’s monthly invoices.

RESPONSE: Correct, the Supply Service Fee shall be fixed and identical for each kWh supplied under this contract. The

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SSF shall not include any charges identified in Paragraphs (a) Electricity; or (c) Other Market Charges; of B19.46.

4. Pittsburgh Air Reserve Center will increase its load by 200-300 mWh per month by October 2019.

Was this taken into consideration when creating the block schedule?

RESPONSE: The block schedule does not take into consideration the new account because the quantity of monthly usage is anticipated to be too small to affect the block schedule.

5. Will unidentified/new costs would be treated as pass-through and not included in the Supplier Service Fee?

RESPONSE: Unidentified or new PJM costs or new regulatory costs (pending notification and agreement by DLA Energy) will be treated as pass-through and not included in the Supply Service Fee.

6. Provide a sample calculation showing how the energy should be scheduled/settled (real time vs day ahead), including the block purchases.

RESPONSE: See example below.

EDC Account Number 1234567890 EDC Zone BGE Day January 1, 2020 Hour-Ending 1 Block Energy 25 MW Load 30 MW Excess Electricity 5 MW (30 MW - 25 MW) Day-ahead Schedule 25 MW Real-time Purchase 5 MW Block Purchase Price $40/MWh West Hub Day-ahead Price $45/MWh BGE Zone Day-ahead Price $50/MWh BGE Zone Real-time Price $60/MWh Governement Owes Contractor: (25*$40) + (-25*$45) + (25*$50) + (5*$60) = $1,425

7. Is one PJM Subaccount required per EDC load zone?

RESPONSE: Text C804 (j), PJM Sub-Accounts, requires that the Contractor establish a PJM Sub-account for each of the relevant UDC zones.

8. Can you explain the dips in usage for Fort Dix Army account#08021218160006406255? There were a few hours on certain days where usage dropped to zero. (11/07/16, 06/25/17, 07/14/17, and 07/15/17)

RESPONSE: The usage dropped to zero due to Main Switch Gear failure. Bus work in the gear shorted to the ground causing an outage.

9. How are the block purchases to be spread across the accounts?

RESPONSE: Each block is divided and the amount is allocated to each account based on their percentage of the overall load.

10. Will DLA assign those blocks to individual accounts or are the blocks to spread evenly?

RESPONSE: DLA will assign the blocks to individual accounts.

11. Does the Government envision an Offeror providing written notice when there is an “excusable delay” only with respect to the transmission system (but not the distribution system)?

RESPONSE: The clause requires notification in the event an excusable delay or similar event is suffered by an ISO or UDC. Therefore, notification is required for both the transmission and distribution system.

12. Provide clarification on National Institutes of Health (page 4) as to what product is requested, since paragraph F seems to diverge from the remainder of the RFP. The request appears to be asking for standby supply for energy and capacity. If this includes capacity, Offerors need more information on the amount of capacity requested.

RESPONSE: Note F is to inform all Offerors of the cogeneration facility at the installation. Capacity will be treated as a pass-through, per B19.46(c)(ii) of Amendment 0001, and not fixed.

13. With respect to the invoicing instructions on the bottom of page 8 of the current version of the Solicitation, are all accounts hourly?

RESPONSE: All accounts on the solicitation have interval meters.

14. FAR 52.212-4 Contract Terms and Conditions - Commercial Terms, Tailored, (g) Invoice The Company would like to clarify that the invoice will not contain the following:

(v) Shipping number and date of shipment, including the bill of landing number

(ix) Taxpayer Identification Number (TIN). The Contractor shall include its TIN on the invoice only if required elsewhere in this contract

(x) Electronic funds transfer (EFT) banking information (although it's available separately)

(A) The Contractor shall include EFT banking information on the invoice (although it's available separately)

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RESPONSE: The Government acknowledges that these invoicing requirements are not applicable to the procurement.

15. DFARS 252.204-7008 is included among the Clauses Incorporated by Reference. Please explain the Government’s decision to include this Clause and how it sees it being relevant to the contract

RESPONSE: The prescription for DFARS 252.204-7008, which is 204.7304(a), states to use the provision in all solicitation and contracts, including solicitation using FAR Part 12 for the acquisition of commercial items.

16. SECTION C (b) Invoices and Payment: Taxes: For load outside of PA, does the Government expect to see taxes included in all line items or have a separate line item that outlines all applicable taxes?

RESPONSE: The Government is exempt from state sales tax and tax exempt forms will be provided at time of award.

17. In section B19.46(c)(iv) on page 8 of the amended Solicitation, the Government requests that Congestion Charges for the accounts be passed through as the difference between West Hub and the zones where the accounts are located.

This is inconsistent with the way PJM will invoice the accounts for those costs. Contractor requests clarification that Congestion Costs will be passed through to the Government in accordance with PJM’s methodology.

RESPONSE: The method described on page 8 and referenced in the above exception/question is functionally identical with PJM’s methodology. If the Contractor wishes to pass through the PJM costs appearing on the invoice (following allocation of the costs to the various accounts), that is acceptable as long as the Government is credited with the proceeds from the sale of the block products at the day-ahead price at the PJM Western Hub. Under that approach, the Government will pay to the Contractor the contract price for the blocks at the PJM Western Hub, be credited the day-ahead price for the energy at the PJM Western Hub, and will pay the Contractor the day-ahead price at the UDC zone for the amount of energy in the blocks. That method is tantamount to the method described on page 8, section B19.46(c) (iv), which is therefore fully consistent with the PJM methodology.

18. Contractor requests clarification as to how basis/congestion is accounted for in the calculations provided in the section entitled “Electricity-Purchased at relevant PJM UDC zone,” specifically with respect to the block purchases.

Blocks purchased at the UDC zone would fix the costs for congestion/basis; however Government is requesting blocks which are to be purchased at PJM Western Hub.

RESPONSE: As noted in the exception/question, the Government requires that the blocks be purchased at PJM Western Hub. The reason why blocks are required to be purchased at the PJM Western Hub is because a given block of energy will be allocated among customers that are in different UDC zones.

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SECTION J - LIST OF ATTACHMENTS

List of Attachments

File Name Description ATTACH.Attachment II -

Experience with End Users_Amendment 0002 ATTACH.Attachment III -

Installation Data Sheet_Amendment 0002

ATTACH.SPE600-17-

R-0406_Amendment 0002