Attachment VI - Questions and Answers.pdf

SPE60424R0400 Page 1 New England 2024

ATTACHMENT VI – QUESTIONS AND ANSWERS

1. Regarding Section B802, Locational Marginal Price, b) Transaction Fee: Would the components that are included in the transaction fee be subject to a change in law event during the length of the contract (i.e., Mystic/IEP)?

DLA Energy Response: Please see amendment 0002.

2. Regarding Section C800, Statement of Work/Specifications (Electricity) (DLA Energy) (Jan 2012), b) Invoice and Payment: The DLA is requesting UDC billing for this opportunity. Is the DLA requesting a single bill through the utility? Would the DLA accept a dual bill option for these groups if they are unable to be served on a single bill?

DLA Energy Response: In accordance with C800(b) of the solicitation, the Government will utilize Consolidated Billing (UDC) and Dual Billing. The installations associated with each of these billing types are listed in C800(b). The Government is unable to accept dual billing for U.S. Army Reserves 99th Division and Devens Army Reserve Depot. The Government confirms that UDC is a single bill submitted through the utility. Please see Amendment 0002, C800, Note 1.

3. Regarding Section I801, Electricity Pricing for Quantities Outside Established Load Bandwidth (DLA Energy) (AUG 2002) (Rev): What is the expected bandwidth for the LMP accounts? The usage/operational notes will affect some of the demand base components in the transaction fee. Please specify the bandwidth expectation (if any) for these groups.

DLA Energy Response: I801 of the solicitation is only applicable to the FFP CLINs of the 12-month base period, only. There is no bandwidth expectation for LMP.

4. For CLINs 0001-0008, 0010, 0013 and 0014, capacity shall be included in the FFP. Can suppliers adjust the fixed price offer based on annual updates to capacity tags?

Additionally, can suppliers adjust pricing based on a change in law event involving Mystic Cost-of-Service Agreement Charges?

DLA Energy Response: Amendment 0002 amends the treatment of capacity for the base period. Reference Amendment 0002, B1.08(e). Amendment 0002 also amends the cost components of the Transaction Fee and Other Market Charges, in B802(b) and (c). If Mystic Cost-of-Service Agreement Charges are adjusted and fall within the parameters of paragraphs (b), (c), or (d) of I820, Electricity Regulatory Changes, the Government may consider adjusting the price.

5. Regarding FAR 52.217-9, Option to Extend the Term of the Contract (Mar 2000): Please confirm that any extension of accounts will be mutually agreed upon by both parties.

Additionally, please confirm how suppliers are expected to offer contract extensions (e.g., is the DLA looking for individual 12-month renewals of the base agreement to be offered yearly?).

DLA Energy Response: The Government’s right to exercise an option is unilateral. If the Government chooses to exercise an option, the Government will issue a written notice

SPE60424R0400 Page 2 to the Supplier within the time parameters stated in FAR 52.217-9. The Government may choose to exercise the option for only some of the installations awarded, and not others.

Additionally, the Government will price the Base Period and the four 1-year Option Periods for all installations on pricing day. Refer to Amendment 0002, B802, for the treatment of costs during the Option Periods.

6. The solicitation calls for RMR to be fixed in the FFP product per B108(e) and in the transaction fee of the LMP product per B802(b). There are currently no RMR charges being assessed in ISO-NE. Our intention is to fix the RMR at a cost of zero in both the FFP product and the LMP product and if RMR charges are assessed in the future, they would be passed through to DLA at cost per clause I820 Electricity Regulatory Changes.

Please confirm this is acceptable to DLA.

DLA Energy Response: Once costs are known, they are to be treated in accordance with I820, Electricity Regulatory Changes. Please also see Amendment 0002 for further information.

7. For each of the CLINs listed in Table 1, will the Four 1-year option periods always be awarded to the same supplier as the successful bidder for the 12-month base period? Or could it be awarded to multiple suppliers?

DLA Energy Response: Yes, the four 1-year Option Periods will always be awarded to the same supplier as the successful bidder of the 12-month Base Period. In accordance with FAR 52.212-2(b) of the solicitation “The Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement.” If an option period is exercised by the Government, it will be unilateral and with the supplier that is servicing the installations for the base period.

8. Please confirm that CLIN 0011 (Naval Station Newport) settles at the Rhode Island Load Zone and that CLIN 0012 (Portsmouth Naval Shipyard) settles at the Maine Load Zone.

DLA Energy Response: Amendment 0002 revises Note 1 of B802 to provide the LMP settlement points in ISO-NE.

9. Please provide Letters of Authorization (“LOA”) for all accounts in this solicitation.

Most of the utilities have very specific forms that may have been revised in the last 2 years, and they require the latest and greatest forms be used to transmit data. Supplier can provide blank forms upon request.

DLA Energy Response: Letters of Authorization (LOAs) will be provided to Offerors who submit a proposal.

10. With Respect to the information provided in B1.08 (c), Note 3: CLIN 0007, for cogeneration associated with account 51925216020:

a. When did the 420 kW Solar array become fully operational?

DLA Energy Response: The Solar Array was completed in conjunction with the Utility Energy Service Contract (UESC), has been operational since 01OCT2020 (when the post installation construction report was submitted).

b. When did the 1 MW turbine become fully operational?

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DLA Energy Response: The construction and completion of the turbine was done in September 2018.

c. type of generation is the 1 MW turbine and does it run constant, aside from the expected maintenance?

DLA Energy Response: The customer has a natural gas microturbine. The turbine will hopefully be up and running by June 2024. Please be advised the turbine has been down since 02DEC2022. Amendment 0002, B1.08, Note 3 has been updated to reflect this information.

11. With Respect to the information provided in B1.08 (c), Note 4: CLIN 0009, can the Government provide additional information regarding:

a. The Government has indicated use of the CCC facility began in 2023 and that an additional 200 kW of load should be expected when the facility is operating. Does the post testing, facility usage in 2023 reflect the noted 200 kW increase or will there be an additional 200 kW expected?

DLA Energy Response: From the customer: After a fitful start, the Cold Climate Chamber (now renamed the Extreme Cold Chamber or ECC) has only recently come on line. Presently, it is used only occasionally, however, it will be utilized more as projects requiring its capabilities are developed. Still the load it represents will not be continuous.

b. Has the IEF overhaul begun already and if so, when was the facility last utilized?

DLA Energy Response:

The Ice Engineering Facility (IEF) overhaul has extended to renovation of office space only, and that renovation is now under construction. Funding considerations have delayed the renovation of the refrigeration equipment and research areas.

Accordingly, the load increase expected when this facility is again operational will be delayed. No funding date has been established for completing this work.

The IEF was last operational in 2015.

12. Due to the recent implementation of a new Purchase of Receivables (POR) program in early 2022 in Rhode Island, Proposer intends to charge a risk premium for the POR costs it is being charged for UDC consolidated billing.

DLA Energy Response: There are only two installations being served in Rhode Island:

1) U.S. Army Reserves 99th Division – RI, and 2) Naval Station Newport. In accordance with C800(b), Invoice and Payment, U.S. Army Reserves 99th Division – RI will utilize Consolidated Billing (UDC) and Naval Station Newport will utilize Dual Billing.

It is the Government’s understanding that enrollment in the POR Program is optional for Commercial and Industrial load but requires the use of Consolidated Billing (UDC) if POR is utilized. It is also the Government’s understanding that utilizing Consolidated Billing (UDC) does not require enrollment in the POR Program. Given the Consolidated Billing (UDC) requirement of the POR Program, Naval Station Newport cannot participate. Regarding U.S. Army Reserves 99th Division - RI, it is the Government’s decision to also, not participate in the POR Program. The Government will still utilize

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Consolidated Billing (UDC) for U.S. Army Reserves 99th Division - RI, despite not being enrolled in the POR Program.

13. With Respect to C800 (b) (9), the Government has indicated that the contractor invoice should contain an Auction Revenue Right (ARR) Credit Line item. Can the Government confirm that ARR are to be fixed for all CLINs and that the invoice should not contain a line item for ARR Credit?

DLA Energy Response: Please see Amendment 0002.

14. Can the Government confirm that for accounts located in Maine, the fixed Renewable Portfolio Standard (RPS) costs is meant to also include fixing both the ME Thermal and Class IA requirements?

DLA Energy Response: The Government is researching. More information is forthcoming.

15. Can the Government confirm that for accounts located in Massachusetts, the fixed Renewable Portfolio Standard (RPS) costs is meant to also include fixing the Clean Energy Certificate, Clean Energy Certificate- Expansion and Clean Peak Standard program requirements?

DLA Energy Response: The Government is researching. More information is forthcoming.

16. With respect to FAR 52.212-4 (k), and the referenced Taxes, Contractor seeks to confirm it will not include Taxes in its Firm Fixed Price. For UDC consolidated billing, any applicable taxes will be collected by the UDC and if Contractor were to include taxes in the FFP price, it would result in a double collection of taxes. For the Dual Billed CLINs, any applicable taxes will be invoiced as a separate line item until a valid tax exemption is supplied. Any previously charged taxes can be refunded once requested with a valid tax exemption. While tax exemptions are not required in MA, NH, and RI, they are required in Maine and Connecticut, and we must have them to bill without tax.

DLA Energy Response: The Government concurs. Tax Exemption Certificates / Numbers are not required for Government Agencies in Massachusetts, New Hampshire, and Rhode Island. The Government will provide tax certificates / numbers for Maine and Connecticut Installations that are made available.

17. National Grid sold their Rhode Island territory (The Narragansett Electric Company) to Rhode Island Holdings, LLC. PPL does not appear to be listed as a utility in the solicitation in B1.08.

DLA Energy Response: Amendment 0002 adds PPL Rhode Island Holdings, LLC to the Utility Service Area listing of B1.08.

18. Please confirm several details around any option periods

a. Is option year pricing to be provided when the base is priced in an auction? Will this be entered into Procurex? This results in potentially 70 prices that need to be submitted at once.

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DLA Energy Response: Yes, the Government intends to price the base and four option periods for all 14 installations on pricing day. For the option periods only the transaction fee will be submitted for pricing since the structure is LMP, per Amendment 0002. Regarding the Government’s use of ProcureX, it will not be used.

b. If Option Year pricing is not to be provided at the time of the base auction, when will it be asked for?

DLA Energy Response: Refer to the response in (a), above.

c. The solicitation states option periods will be exercised at the sole discretion of the Government. Does this mean the Government will ask for option pricing at a later date?

DLA Energy Response: No, refer to the response for (a) and (d).

d. If Option Year pricing is sought at a later date, please confirm it will be subject to mutual written agreement between both parties, reflecting a new transaction (term, price, accounts, etc. as found in the Government’s standard transaction confirmation).

DLA Energy Response: The Government’s right to exercise an option is unilateral. If the Government chooses to exercise an option, the Government will issue a written notice to the Supplier within the time parameters stated in FAR 52.217-9. The Government may choose to exercise the option for only some of the installations awarded, and not others. Additionally, the Government will price the Base Period and the four 1-year Option Periods for all installations on pricing day. Refer to Amendment 0002, B802, for the treatment of costs during the Option Periods.

e. Could Option Year pricing encapsulate multiple Option Years with the same levelized price?

DLA Energy Response: In accordance with FAR 52.212-2(b) of the solicitation “The Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. The Government may determine that an offer is unacceptable if the option prices are significantly unbalanced.”

f. If a Proposer does not win a Base Year CLIN, can it win later Option Year pricing?

DLA Energy Response: No. If an option period is exercised by the Government, it will be unilateral and with the supplier that is servicing the installations for the base period.

g. For the four 1-year “Option Periods”, the Government is indicating that these could be exercised at any point with 90 days written notice “…before the contract expires.” Is the Government expecting the Contractor to hold the Transaction fee

SPE60424R0400 Page 6 bid or will the Contractor be able to price adjust to current market conditions if/when the Government chooses to contract and Option Period?

DLA Energy Response: If the Contractor is awarded the location/installation on pricing day, the Government expects the Contractor to “hold” the Transaction Fees for the Option Periods of the respective location/installation. The Contractor will not be allowed to adjust or renegotiate the Transaction Fee of Options Periods due to market conditions. If there is a change in law, Contractors should act in accordance with I820, Electricity Regulatory Changes, of the solicitation.

Please see Amendment 0002 for further details concerning the Transaction fee.

i. Ex: If the Government provided 90 day notice (Feb 2025) to contract the May 2025 to May 2026 1-year period, is the contractor expected to hold the prices offered on the due date of the RFP or can they adjust based on current market conditions?

DLA Energy Response: Contractors are expected to hold the prices submitted on pricing day. Please see Amendment 0002 for further details.

ii. If the contractor is expected to hold pricing, and since the Transaction Fee for the Option Periods include RPS which can have significant volatility, would the Government consider passing through RPS for the Option Period?

DLA Energy Response: Amendment 0002 amends the cost components of the Transaction Fee and Other Market Charges, in B802(b) and (c).

h. UDC Consolidated billing is requested for several CLINs – utilities in ISONE generally do not allow for any index based prices on this bill format and all prices must be fixed. What happens if the Government exercises an Option Year and does not fully convert to a fixed price prior to new enrollments being required for the applicable term and account(s)? Stated another way, the Government’s pricing style for Option Years is not allowed by these utilities – fully fixed prices are the only option and would need to be locked down prior to the respective drop/enrollment deadlines.

i. Stated another way, can the Government confirm that UDC Consolidated billing, during the four 1-year option periods, will only be available if a contract has converted to a fully fixed product?

DLA Energy Response: Please see Amendment 0002, C800, Note 1.