Attachment XII - Responses to Questions Received.pdf

SPE60423R0400 Page 1 of 10 Attachment XII ERCOT 2023

Attachment XII Responses to Questions Received

Please note that any questions submitted that are not listed below were determined to be exceptions to the solicitation and should be submitted with your proposal for further consideration.

1. Attachment I: Installation Data Sheet, Acct Sum Tab Line 374 shows account 1008901040561552608100; however, it isn’t listed on the CBP tab.

DLA Energy Response: Please refer to Amendment 0002 which removes ESID 1008901040561552608100 from the Installation Data Sheet.

2. Attachment I: Installation Data Sheet Line 375 shows account 10204049752009200; was the account truncated and should be 10204049752009211 as listed on the CBP tab?

DLA Energy Response: Please refer to Amendment 0002 which revises ESID 10204049752009200 to 10204049787542770 on the Installation Data Sheet.

3. Attachment I: Installation Data Sheet, CBP Tab I don’t see accounts 10032789454722600 and 10032789424932500 on the Acct Sum Tab.

Please advise if those are correct account numbers and should have been included on

DLA Energy Response: Please refer to Amendment 0002 which removes ESID 10032789454722600 from, and adds ESID 0032789424932500 to, the Account Summary Tab.

4. Would the DLA consider bids with 0% CFE?

DLA Energy Response: It is expected that the offeror's proposal will satisfy the requirements of the solicitation, to include the supply of CFE. However please refer to FAR 52.212-1(e) Multiple Offers encouraging the submission of offers presenting alternative terms and conditions, or alternative products.

5. Under what conditions would the DLA consider bids which include CFE that is sourced from assets with in-service dates prior to October 1, 2021?

DLA Energy Response: All CFE Supply must meet the requirements of C.2 Paragraph (a), to include being supplied from resources placed into service on or after October 1, 2021. However please refer to FAR 52.212-1(e) Multiple Offers encouraging the submission of offers presenting alternative terms and conditions, or alternative products.

6. Would the DLA consider bids with compliant CFE, but which require the DLA to sign a 10-year power purchase agreement (PPA) from a specific asset?

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DLA Energy Response: The Government does not intend to exceed a 36-month period of performance as defined in B.1(d) of the solicitation.

7. Would the DLA consider a bid using a “bridge CFE” approach whereby CFE would come from older assets initially and would be replaced with CFE from resources with in-service dates after October 1, 2021 as available?

DLA Energy Response: See response to Question 5 above.

8. As it relates to question above, would the DLA be open to allowing pass-through of added cost between “bridge CFE” and compliant CFE?

DLA Energy Response: See response to Question 5 above.

9. Would consideration be given for a non-complying bid without CFE sourcing included?

DLA Energy Response: See response to Question 1 above.

10. Would the request for consolidated billing be based on clins or subgroups, or is the DLA requiring one complete summary bill for all clins together in one summary invoice?

DLA Energy Response: A single invoice shall be issued for all accounts at each installation as stated in G.1 of the Solicitation, not for each CLIN as a whole. Individual installations are identified in Section B, Tables 1 and 2, of the solicitation.

11. Appendix X shows a price of .065 for RTSPP on the pricing sheet. Is that a stated fee that is stipulated or what is the .065 for? Does the transaction fee cover all cost including the RTSPP volumes or is the .065 covering margin for those charges.

DLA Energy Response: The $0.065/kWh cited in Attachment X for ‘Energy – RTSPP’ is an estimate used for evaluation purposes only. This is a constant value for energy priced at RTSPP used to calculate the total estimated value of each CLIN where applicable. During contract performance, energy shall be priced at the relevant RTSPP for CLINS 0005, 0007, 0009, 0017, 0019, 0021, and 0023 as defined in Provisions B.2 and/or B.3.

12. Can you provide the KW or load Profiles and the voltage level (Rate Class/Code) for each acquisition ESI.

DLA Energy Response: All available load data is provided in Attachment I – Installation Data Sheet. All offerors which submit a valid proposal will be provided with a letter of authorization to obtain additional account information after the solicitation closing date.

13. For the ESIS that have 0 usage do you want us to load as 0 without shape?

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DLA Energy Response: Usage data provided in Attachment I represents the Government’s best estimate of usage during the delivery period. Please also refer to the response to Question 12 above as it concerns the provision of letters of authorization.

14. For IDR ESIS that we are not rep of record for currently do you want generic shaping or can you provide us the history so we can shape from past usage?

DLA Energy Response: See response to Question 12 above.

15. In regards to the FFP AGGREGATE (Installation CBP), can you please confirm if ESID 1008901040561552608100 (9107 BOUDREAUX RD, Tomball, TX 77375) still belongs to the DLA?

DLA Energy Response: See response to Question 1 above.

16. In regards to the FFP AGGREGATE (Installation CBP), can you please confirm the actual ESID number for the address CROCKETT HEIGHTS UNIT TOWER 1, OZONA TX 76943? The ESID provided by the DLA is 10204049752009211, but this ESID cannot be found in ERCOT.

DLA Energy Response: See response to Question 2 above.

17. In regards to the FFP AGGREGATE (Installation MCRC Galveston), can you please confirm if ESID 1008901023813192070102 (2 FORT POINT #6B) still belongs to the DLA?

DLA Energy Response: DLA Energy is continuing to solicit ESID 1008901023813192070102 on behalf of MCRC Galveston under this solicitation.

18. With regards to Section B.2(a)(1) and B.2(a)(2)(i), as currently written there is no direction on how the basis from the hub to the load zone is to be treated for NASA. Typically customer on a block and index product have blocks at the hub or load zone (NASA specified hub), but the quantities outside are typically settled at the load zone. The Government has specified index settlement at the Hub. The Government must pay for the basis in some fashion.

Please confirm if settlement should occur at the load zone, or how basis is to be treated.

DLA Energy Response: All applicable market charges (or credits) not identified in B.2(a)(1) or B.2(c) shall be included in the Transaction Fee as defined in B.2(b). Specific to NASA JSC CLINs 0005 and 0017, as hub to load zone basis is not specifically identified in B.2 Paragraph (a) or in Subparagraph (c)(2), this charge shall be included in the Transaction Fee.

19. With regards to I821, a holdover period can in fact be longer than 90 days. It is entirely up to the new supplier to enroll accounts and Proposer cannot make a new supplier enroll an account. The holdover term exists to protect the Government due to the limitations of Provider of Last Resort service in ERCOT.

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DLA Energy Response: It appears this comment is referring to Solicitation Provision I.9. The Government is unable to exceed the 90-day period defined in Provision I.9. The incumbent contractor may file a claim for equitable adjustment pursuant to DFARS 252.243-7002, Claims for Equitable Adjustment, if it believes the Government is liable for unpaid compensation.

20. On CLINs 0001/0002 and 0013/0014, is this to be a single weighted average price? All installations in that CLIN would be bound to participating at that price. Please confirm that no installation would reject participation as that would impact the price that could be offered to the other installations.

DLA Energy Response: The Government intends to award a combination of either CLINs 0001 and 0002, or CLINs 0013 and 0014, as a whole. A single dollar per kilowatt-hour rate is to be offered for each of these CLINs as indicated on Attachment X – Pricing Sheet.

21. What is the 4CP report that Fort Hood is requiring? Can you please show an example?

Are you just looking for an Excel file showing what the 4 hours were for the past calendar year and then what each account’s usage was during that period?

DLA Energy Response: Please refer to Amendment 0002 which includes an example of the 4CP report for Fort Hood.

22. Besides the note at the bottom of page 7, do any of the other facilities in this RFP have existing or planned behind-the-meter generation including but not limited to cogeneration, solar, wind, fuel cell, etc. If so, please provide as many details as possible including installation date, fuel type, historic output, intended future output, etc.

DLA Energy Response: DLA Energy is not currently aware of any behind-the-meter generation beyond what is defined in this solicitation, however DLA Energy does not a guarantee that behind-the-meter generation will not be sought during the period of performance. Additional information will be provided should DLA Energy become aware of any additional behind-the-meter generation both pre- and post- award.

23. Will there be a reverse auction followed by blind price submission? This is not particularly detailed in the solicitation.

DLA Energy Response: Per L09 Reverse Auction of the solicitation, a reverse auction may be utilized however no determination has yet been made. Should the Government elect to conduct a reverse auction, all offerors will be notified. Please note that per L.1(b)(4), initial price offers shall be submitted for those CLINs for which the offeror intends to be considered for award. Initial prices shall be submitted on Attachment X – Pricing Sheet with each offeror’s proposal.

24. Attachment II allows for just Form B, suggesting that a Generator (and not a supplier) is able to bid. However the RFP specifically asks for retail supply and contains requirements that

SPE60423R0400 Page 5 of 10 could only be demonstrated and ultimately fulfilled by a supplier. Please detail Form B’s purpose.

DLA Energy Response: Statements on Attachment II relate only to the completion of the Forms. The Government will consider for award only those offerors which demonstrate they satisfy the responsibility criteria defined in L.3 Evidence of Responsibility and FAR 9.104.

Please also refer to Amendment 0002 which revises Attachment II to replace the term ‘Third Party Marketer’ with ‘Contractor / CFE Supplier’; and amends C.2 Paragraph (d) to clarify that it is the responsibility of the Contractor submit Attachment II and ensure its proper completion.

See also the response to Question #42 below.

25. In C.2.c the Government mentions ownership of the EACs. Is the Government taking title? Typically suppliers retire RECs in the customer’s name. If the Government intends to take ownership and title, they would need to supply the details of their ERCOT GIS account (and the same for other regions). This seems counter to C.2.d.iii.

DLA Energy Response: It is acceptable for EACs to be retired on behalf of the Government so long as the EACs have not been sold, transferred, or retired on behalf of any party other than the Government.

26. Can the bids be staggered to allow if we don’t win CLIN 2/3, we can repurpose those EACs to other CLINs? This is detailed more with an example using round numbers and mock CLINs for ease:

a. If proposer has a fixed quantity of CFE less than all that is required for the full consumption of all CLINs, can we indicate that and provide pricing for multiple CLINs? Example using round numbers for sake of ease: CLIN 000A requires 25 CFE, CLIN 000B requires 20 CFE, and CLIN 000C requires 55 CFE and we only have 60 CFE available, could we identify the max available? And thus if we won CLIN 000A and CLIN 000B, the previous offer for CLIN 000C is no longer available.

DLA Energy Response: While the Government has not yet established firm plans for the submission of Final Price Proposals (see response to Question 23 above), the use of staggered price submission dates is currently being considered where by a supplier may choose to whether or not to submit a price proposal on each date dependent on their ability to fulfill the requirement(s) being priced that day.

27. With regards to FAR 52.204-21, DFARS 252.204-7008, DFARS 252.204-7019 and DFARS 252.204-7020, it is assumed that controlled unclassified information (CUI), and covered defense information (CDI) does not include information that is publicly available. To ensure the

SPE60423R0400 Page 6 of 10 information is protected in accordance with the requirements, please identify any and all CUI and CDI that will be included within this contract and will be marked as such.

DLA Energy Response: No information has been identified as CUI or CDI at this time.

28. The charges for “nodal ancillaries” are included in the FFP or Transaction Fee. What, exactly, does DLA by “nodal ancillaries” – all, or only market-based, “Ancillary Services”, as defined by ERCOT, the latter of which a supplier can hedge?

DLA Energy Response: All CFE CLINs and Retail FFP CLINs shall include all competitive retail charges/credits (to include Nodal and Market-Based Ancillaries), unless specifically identified as a pass-through to the Government. As of Amendment 0002, those charges identified as a pass-through are: TDSP Charges, GRT, PUCA, ERCOT Contingency Reserve Service, ERCOT Securitization Default Charges, and ERCOT Securitization Uplift Charges.

The Transaction Fee, as defined in B.2 Firm Fixed-Price Blocks (Electricity), Paragraph (b) shall include all charges (or credits) not specifically identified in either B.2 Paragraph (a) or B.2 Paragraph (c).

The Transaction Fee, as defined in B.3 Real-Time Settlement Point Price (Electricity) Paragraph

(b) shall not include any charges identified in Paragraphs (a) or (b). Therefore, all other market charges (or credits) not specifically identified in Paragraphs (a) or (b) shall be included in the Transaction Fee.

29. ERCOT Contingency Reserve Service is a new ERCOT charge that has been in development at ERCOT. Is it a pass-through charge with no additional mark-up?

DLA Energy Response: Please refer to Amendment 0002. ERCOT Contingency Reserve Service has been defined as a direct pass-through for all CLINs.

30. Firm Fuel Service is a new ERCOT charge that has been in development at ERCOT. Is it a passthrough charge with no additional mark-up?

DLA Energy Response: See response to Question 4 above. Firm Fuel Service has not been identified as a pass-through charge for any CLIN under this solicitation. However please refer to I.9 Holdover Contract Line-Item Number regarding CLIN 0025.

31. P. 23 - Part II, Section 1 (Contract Clauses) (l)(2)(D) states “In the event of a termination for convenience, the Government’s liability shall be limited to the termination value calculated in accordance with the provisions of this DLA Energy FAR tailored clause.” For clarity, can DLA confirm that the termination value would be in addition to any other electricity charges due and outstanding from the Government?

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DLA Energy Response: Per FAR 52.212-4 (Tailored), Subparagraph (l)(1), “…the Contractor shall be paid for electricity delivered under the contract prior to the date and time specified by the Government for the termination of any or all contract quantities plus any additional energy the Contractor is required to deliver for the Government’s account under applicable location distribution company tariff sheets.”

32. Can DLA confirm that RECs (that meet the definition laid out in page 3 of the document qualify as CFE under this solicitation?

DLA Energy Response: Per the definition of Energy Attribute Certificate (EAC) in A.1.1 of the solicitation, “A renewable energy certificate, or REC, is a type of EAC.” Therefore a REC, also meeting the additional requirements of CFE as stated in C.2(a), would qualify as an EAC.

33. Please confirm that “Attachment X – Pricing Sheet” should be submitted with suppliers’ technical response with indicative pricing and that a reverse auction will be held at a later date.

DLA Energy Response: See response to Question 23 above.

34. If there is a reverse auction at a later date, does the DLA plan to use the Procurex reverse auction platform for executable pricing?

DLA Energy Response: See response to Question 23 above. Should a decision be made to hold a reverse auction for the submission of final price proposals, it is anticipated Procurex would be the platform used.

35. Please confirm that there is no requirement to supply 24/7 carbon pollution-free electricity to the facilities in ERCOT listed in Attachment I.

DLA Energy Response: While E.O. 14057 sets forth the goal of the Federal Government procuring 100 percent CFE on a net annual basis by 2030, to include 50 percent 24/7 CFE, there is no requirement in this solicitation that CFE must be supplied on a 24/7 basis. However, please refer to L.1(b)(2)(ii) which requires offers to address the expected percentage of 24/7 CFE as part of the CFE Supply Plan to be submitted with each proposal. Please also refer to C.2(e)(iv) which requires the reporting of the % CFE match as part of the CFE Report should 24/7 CFE matching be available or provided by the supplier.

36. Can suppliers provide CFE from generation assets with commercial operation dates mid-contract and use CFE from another generation asset (as a Bridge EAC) to bridge the gap in order to satisfy the DLA’s requirements until the generation comes online?

DLA Energy Response: See response to Question #5.

37. What happens to shortfall during the contract—do suppliers have to fulfill the DLA’s requirements with purchased CFE from qualified generation assets with a COD of 10/2021 or

SPE60423R0400 Page 8 of 10 later, and we purchase the electricity from these assets? Or can suppliers use purchased EACs from qualified generation assets with a COD of 10/2021 or later to fulfill CFE requirements? Or can suppliers provide Bridge EACs from qualified generation without a COD requirement?

DLA Energy Response: Per B.1(c), “CFE may be met with either Purchased CFE, Purchased EACs in addition to electricity supply, or a combination of the two.” Please refer to Question #5 regarding Bridge EACs.

38. In order to better align with standard industry practices for renewable energy purchases, would the DLA be amenable to changing the definition of “Carbon pollution-free electricity” or “CFE” to the following: “electrical energy Energy Attribute Certificates (EACs) produced from resources that generate no carbon emissions, including marine energy, solar, wind, hydrokinetic (including tidal, wave, current, and thermal), geothermal, hydroelectric, nuclear, renewably sourced hydrogen, and electrical energy generation from fossil resources to the extent there is active capture and storage of carbon dioxide emissions that meets EPA requirements.”

DLA Energy Response: The definition from E.O. 14057, which is driving this requirement, is to be used.

39. Would the DLA be amenable to changing the definition of “Grid Region” to the following:

“the area of the grid within which a balancing authority Independent System Operator/Regional Transmission Operator (ISO/RTO) maintains balance between electric load and resources.”

DLA Energy Response: The definition from E.O. 14057 Implementing Instructions, which is driving this requirement, is used.

40. In order to better align with standard industry practices for renewable energy purchases, would the DLA be amenable to changing Attachment II: Attestation Form to remove references to “CFE” and replace with “RECs”?

DLA Energy Response: Not all RECs would meet the definition of CFE as defined in this solicitation. Please see response to Question #32 above.

41. When there is a reference to CFE supply in the RFP, would this be considered the same as “purchased EACs”?

DLA Energy Response: See response to Question #37. Purchased EACs may be used to satisfy the requirements of CFE, but the solicitation also permits Purchased CFE (or a combination of both Purchased EACs and Purchased CFE) as additional alternatives.

42. Please confirm whether retail suppliers are required to annually complete and sign Form A of Attachment II: Attestation Form. Additionally, please confirm that only generators are annually required to complete and sign Form B of Attachment II: Attestation Form.

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DLA Energy Response: See response to Question #24 above which addresses the timing of Attachment II submission to the Government. Generators are required to complete and sign Form B of Attachment II only when the energy attributes associated with the CFE are being attested to the Government by only the Generator. If the energy attributes associated with the CFE are being attested to the Government by the Contractor / CFE Supplier, then the Contractor / CFE Supplier shall complete both Form A and Form B.

43. Please more clearly define “electricity supply” on page 4 of the solicitation.

DLA Energy Response: In the context of B1.08(c), “electricity supply” is used to differentiate between Purchased CFE and Purchased EACs. The statement “Purchased EACs in addition to electricity supply…” directly relates to the definition of Purchased EACs in A.1.1 which says ‘”Purchased EACs” are EACs that are procured independently from the agency’s purchases of physical power, often referred to as “unbundled” EACs.’

45. Will the DLA allow suppliers to provide exceptions in their responses?

DLA Energy Response: Yes, please refer to Question #4 above.

46. Please provide additional guidance on the deficiency correction process. Will there be an open discussion period following the submission of suppliers’ technical proposals?

DLA Energy Response: Please refer to FAR 15.306, Paragraph (d) concerning exchanges with offerors after establishment of the competitive range.

47. Can the DLA confirm that it understands that an “electricity deficiency” as defined on page 8 of the RFP can result in a charge, as well as a credit on an account invoice if the wholesale pricing happens to be negative? (This rarely happens but is possible in ERCOT.)

DLA Energy Response: Please refer to Amendment 0002 which revises B.2(a)(2)(ii) and (iii) to clarify the treatment of negative RTSPP rates during Settlement Periods in which there is either an Electricity Deficiency or Excess Electricity.

48. Please confirm the DLA is requesting dual billing.

DLA Energy Response: Per G.1(a), the Government will utilize Consolidated REP Billing for all installations unless otherwise noted elsewhere in the solicitation.

49. Please confirm whether suppliers should provide pricing on the lines labeled “Energy – RTSPP (est)” in “Attachment X – Pricing Sheet.”

DLA Energy Response: See response to Question #11 above.

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50. For pricing for the Strategic Petroleum Reserve, is the DLA requesting that ancillary services be passed through?

DLA Energy Response: For SPR – Bryan Mound CLINs 0009 and 0021, see B.2(c)(3)(vi) which states ancillary serviced and all other ERCOT market charges (and any applicable credits) not identified in B.2 Paragraphs (a) and (b) shall be treated as a direct pass-through with no additional markup. For SPR – Bryan Mound CLINs 0010 and 0022, please refer to B.1(e). See also the response to Question #28 above.

52. Regarding Section G.1. Invoice and Payment Item (a) item #4, please confirm whether it is acceptable if a supplier does not have the capability to provide the previous month’s metering data because actual meter data may not always be provided to supplier in time for any estimated billing to be trued-up on the next billing cycle. Does the DLA agree and accept this?

DLA Energy Response: Please refer to G.1(a)(11) of the Solicitation.

53. Regarding FAR 52.212-4 Contract Terms and Conditions, (g) Invoice, supplier’s invoice will not include (v) shipping number and date; (vii) terms of any discount; (ix) taxpayer ID number;

or (x) EFT banking information. Does the DLA accept this?

DLA Energy Response: In accordance with FAR 52.212-4, Paragraph (s) of the Solicitation, the requirements defined in G.1 take precedence over those defined at FAR 52.212-4(g).

54. Regarding the product REAL-TIME SETTLEMENT POINT PRICE, do you plan to purchase hedges with this product during the term of the contract?

DLA Energy Response: The Government does not intend to purchase any ‘hedges’ with respect to B.3 Real-Time Settlement Point Price (Electricity), however please see B.4 Contract Price Conversion (Electricity) which provides for bi-lateral discussions to convert any CLINs subject to Provision B.3 to a Firm Fixed-Price.