Attachment X - Questions and Answers.pdf

SPE60424R0408 – PJM 2024

Attachment X – Questions and Answers

Below are the Government’s responses to questions received prior to the closing of the solicitation on October 3, 2024:

1. For purposes of transparency and consistency across suppliers, will you be socializing all Q&A to all participants?

DLA Energy Response: Questions and answers that apply universally may be shared or incorporated into the solicitation. Questions that are specific to individual suppliers will not be shared.

2. Do any of the facilities in this RFP have existing or planned behind-the-meter generation, including but not limited to, cogeneration, solar, wind, fuel cell, etc. beyond what is disclosed on Note 2 on page 7? If so, please provide as many details as possible including installation date, fuel type, historic output, intended future output, etc.

DLA Energy Response: All existing generation projects, of which DLA Energy is currently aware, have been identified in Section B1.08 of the Solicitation.

3. Are any of the facilities in this RFP subject to BRAC?

DLA Energy Response: There are no facilities known to be subject to BRAC at this time.

4. With regards to DFARS 252.204-7008, 252.204-7012, 252.204-7019 and 252.204-7020, it is assumed that controlled unclassified information (CUI), and covered defense information (CDI) does not include information that is publicly available. Please confirm the Government does not anticipate that any CUI/CDI will be provided to or generated by the contractor performing under the resulting award? If any such information will be provided or generated, please identify or describe the information.

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

5. With regards to B802(c)iii the Government states “The Contractor shall refund to (or charge) the PJM marginal loss credit." Please confirm this is to be “Transmission Loss Credits” which is PJM Billing Line Item # 2220 and is to be passed through, aligning to contract SPE60423D8000, CLINs 0029/0034.

DLA Energy Response: The Government updated language in Amendment 0002 to clarify the applicability of Transmission Loss Credits.

6. With regards to CLIN 0033, Attachment V suggests that Transmission Enhancement/RTEP/FERC494 are to be included in the price, which is counter to contract SPE60423D8000, CLIN 0034 and B802(c)iii of SPE604-24-R-0408 (RFP). Please confirm that these costs should be passed through with no markup as suggested in the RFP.

DLA Energy Response: Please refer to Amendment 0002 which adds B802, SubParagraph (c)(2) more directly defining the Other Market Charges applicable to CLIN 0033. For CLIN 0033, B802, Subparagraph (c)(2)(ii) Transmission details a direct pass-through of PJM Network Integration Transmission Service stating, “All other transmission related costs, including enhancement charges, must be included in the Transaction Fee.” It also states, “The TEC [Transmission Enhancement Charge] charges are not to be treated as a pass-through for Argonne.” Costs relating to FERC Order 745 (or FERC 494) are not defined as Other Market Charges under SubParagraph (c)(2) and therefore, in accordance with B802 (b) Transaction Fee, shall be included in the Transaction Fee.

7. Please confirm capacity and transmission costs calculations for pass-through billing purposes will include all applicable scalars such as:

• Capacity Costs o Actual Capacity PLC Value (kW) x Capacity Price ($/kW-Day) x Forecast Pool

Requirement x Final Zonal Scaling Factor x Average Daily Zonal Scaling Factor (DZSF) x # Days in Billing Period.

DLA Energy Response: The Government confirms the formula above is consistent with the methodology defined in B802, Subparagraph (c)(1)(i) of the Solicitation.

o With regards to Argonne, please confirm the formula shown is just an example in Attachment 5. The scaling factors and FPR may change for later planning years. Please confirm that the listed PJM Auction price is not to be used for the full term.

DLA Energy Response: As revised by Amendment 0002, the formula in B802(c)(2)(i) provided under “Formula Based on June 1, 2024, Values:” is an example. Subparagraph (c)(2)(i) further states “PJM capacity price, scaling factors, pooling requirements, and Argonne PLC subject to change each June 1. Monthly costs should be prorated when costs change during a mid-month billing cycle.”

• Transmission Costs o NITS = Actual NSPL PLC Value (kW) x Transmission Price ($/kW-Day) x Average

NSPL Daily Zonal Scaling Factor x # Days in Billing Period.

DLA Energy Response: The Government confirms the formula above is consistent with the methodology defined in B802, subparagraph (c)(1)(ii) of the Solicitation.

o TEC/RTEP = Actual NSPL PLC Value (kW) x Transmission Enhancement Price ($/kW- Day) x Average NSPL Daily Zonal Scaling Factor x # Days in Billing Period

DLA Energy Response: The Government confirms the formula above is consistent with the methodology applicable to CLIN 0028 and defined in B802, subparagraph (c)(1)(ii) of the Solicitation.

8. Will the dedicated facilities charge in Note 2 on pages 8-9, “Requirements for MPO’s Load Serving Entity (LSE),” be applied only to the largest MPO account?

DLA Energy Response: Please refer to C800 (b) Note 5, as revised by Amendment 0002, which states “Allocation of charges for MPO’s Load Serving Entity (LSE) shall be applied to the largest account in CLIN 0021.”

9. With respect to C800(b), Proposer takes exception to providing the Government demand information and UDC "pass through" charges in its invoices where Government has requested dual billing, since in these cases, this information would be the responsibility of the UDC to provide on its invoices to the Government.

DLA Energy Response: As stated in C800, Paragraph (b), demand information is only required if available from the UDC and will not be required for accounts utilizing Dual Billing.

10. Proposer wishes to clarify that for Ohio accounts, transmission will be invoiced by the UDC, and for accounts for certain Pennsylvania UDC accounts, transmission enhancement will be invoiced by the UDC.

DLA Energy Response: Please refer to C800, Paragraph (a) which states “With the exception of any and all transmission and distribution related charges payable by the Government to the UDC under the applicable tariff for each account… the Contractor is responsible for all costs associated with deliveries to the delivery point and the scheduling and coordination for delivery of electricity to the service point for each account under the contract.”

Suppliers shall not attempt to invoice the Government for any transmission and/or transmission enhancement charges in those cases an account is located within a UDC service territory in which the UDC invoices the Government for that same charge.

11. For Argonne, line losses are to be passed through. However, there is no statement as to whether these should be using the Day Ahead LMP or Real Time LMP. Please confirm this should be Day Ahead LMP to align with the index used for the energy.

DLA Energy Response: Please see Amendment 0002 which revises B802(c)(2)(iii) to clarify that the Commodity Price “shall be consistent with the energy price defined in B802, Subparagraph (a)(2).”

12. Proposer may have additional questions once all accounts have been provided in a format that is accessible and valid Letters of Authorization have been submitted to the utilities with load data returned.

DLA Energy Response: Offerors may include additional questions and/or exceptions with their proposal for further consideration when holding discussions with offerors within the competitive range.

13. Proposer has previously encountered issues with the Electronic Invoicing internet website in trying to send its invoices for the Maryland Procurement Office through that platform. Are there any invoice submission alternatives for this facility? Proposer would like to clarify that, in the event Proposer is awarded, Proposer shall make good faith efforts to submit all invoices through the Electronic Invoicing internet website. Until such time that Proposer can meet this requirement, Proposer shall submit such invoices through Proposer’s standard billing process.

DLA Energy Response: There are no alternative payment options. The Government verifies that the electronic invoicing system identified in the solicitation remains the same. MPO will provide help desk information for any issues that may arise.

14. Regarding Section C800(b) under the note entitled “Requirements for MPO’s Load Serving Entity (LSE)”:

a. With respect to any charges applicable to the Dedicated Facilities Project (as defined in the RFP) and the abandonment of that Project, in full or in part, the RFP mentions a requirement to execute agreements with PJM, BGE, or other third parties. What such agreements does DLA anticipate will be necessary?

DLA Energy Response: No agreements for the abandonment of the project are currently anticipated.

b. How will the charges associated with the Dedicated Facilities Project and the abandonment of the Dedicated Facilities Project appear on the LSE’s PJM invoice?

DLA Energy Response: The cost will appear on the bill as a special facility charge which should let the contractor know the charge should be routed to MPO for payment. The charge is independent and should not be divided amongst the three accounts.

c. Proposer requests to see past invoices or summaries for the past year of charges related to the Dedicated Facilities Project and its abandonment. If that isn’t possible, could the Government please indicate how significant these charges are on a monthly basis?

DLA Energy Response: The Government is not able to provide an estimate at this time.

15. Regarding invoicing on CLIN 0026, Provider Consolidated Invoicing typically refers to the Supplier having both its charges and the utility charges on the invoice. This is not allowed in JCPL. Are you seeking the supplier to group its own invoices so that Dix, McGuire, and Lakehurst receive a summary invoice reflective of the accounts that pertain to each base?

DLA Energy Response: Please refer to Amendment 0002.

16. On Page 7 of the RFP, subsection (a)ENERGY, it says the PJM Load Zone. Please confirm this should actually be the PJM Residual Metered Load Aggregate Load Zone.

DLA Energy Response: This question appears to refer to B802, Paragraph (a). Please refer to Amendment 0002 which specifies the PJM Residual Metered Load Aggregate Load Zone.

17. With regards to CLIN 0033, there is no direction as to treatment on FERC745. Can the Government please clarify?

DLA Energy Response: Costs related to FERC Order 745 shall be included in the Transaction Fee for CLIN 0033.

Per B802, Paragraph (b), the “…Transaction Fee shall compensate the Contractor for all services performed and all costs incurred to supply electricity to the point of delivery whose recovery is not explicitly provided for by the separate Energy and Other Market Charges components described in subsections (a) and (c) of this section.”

18. With regards to B802, Locational Marginal Price, Proposer notes that that most customers explicitly state to NOT gross up metered load for line losses. This is because most customers specifically wish to compare the kWh volume from the EDC meter to what they are being billed by their supplier. Please confirm that the Government wishes to specifically NOT gross up metered load. The Government had similar language in previous solicitations and revised it. Note subsection (a) still says “the metered load of the account is adjusted for line losses” when this is explicitly stated to be passed through in subsection (c)(1)(iii).

19. Regarding CLIN 0033, if the actual usage associated with the super-computer varies from what is forecasted in the RFP, how and when will suppliers be notified of the deviations?

20. Please provide a valid LOA for AEP Ohio. They require a specific format on a form dated in 2016.

DLA Energy Response: Letters of Authorization will be provided to all offerors that have submitted a valid proposal following the Offer Due Date.

21. With regards to CLIN 0012, UDC# 0550140222917001818033 is provided 5601 FISHERS LN. In inquiring to data at Pepco, the usage provided by Pepco was ~8,000 MWh/yr while the Attachment 1 file for this account shows usage that was ~56,000 MWh/yr. Attachment 1 also shows multiple meters – is there a chance that one or more service numbers (UDC#) were not provided? One account at a utility may have multiple service numbers sometimes.

22. With regards to Attachment VI, the same exact file was provided in 2022. Since 2 years have progressed, Contractor presumes that construction would have occurred on some of these by now or assumptions changed. There is also no reference on there to tie back that production to specific JCPL Choice IDs. Please provide the production anticipated along with the online date to match to the specific Choice IDs given there are >150 these could apply to.

DLA Energy Response: This is the most recent information the Government has for the solar array. Information may be updated if new information becomes available.

23. With Regards to CLIN 0026, Note 2 specifies there is a 32.3 MW solar facility coming online.

Aforementioned Attachment VI shows ~4 MW. An AC/DC conversion would still not account for that difference. Can you please clarify? Or does this 32.3 MW refer to generation already online?

DLA Energy Response: The Government is continuing to review and will amend the solicitation at a later date as necessary.

24. With regards to CLIN 0026, Note 2 – there is 3.4 MW of solar coming online in 24/25. Is there a COD and can you provide with Choice IDs will be impacted?

DLA Energy Response: This is latest information the Government has for the solar array. Information will be updated as soon as information becomes available.

25. The below accounts have issues when either trying to reference Attachment 1 or upon contacting the utility.

Please provide a resolution.

CLIN Account # / Choice # Utility Reason

0021 9607449848 BGE Account invalid - verified in CDWeb 0023 286780405 BGE This is not a valid # of digits

0031 5415120233 Dayton Dayton changed their account number format. Please provide corrected account#

0031 7707100871 Dayton Dayton changed their account number format. Please provide corrected account#

0031 8628275548 Dayton Dayton changed their account number format. Please provide corrected account#

0031 ?? Dayton No account number at all 0021 9607449848 BGE No recent usage

DLA Energy Response: Please refer to Amendment 0002 which updates the account numbers for CLINs 0023 and 0031. For CLIN 0021, the Government has confirmed the Choice ID Number is accurate and active but is known to not show up in BG&E’s CDWeb system.

26. Will the 6 month base period and 6 month option period be solicited separately for each installation? In other words, can a supplier offer on the base period for a given CLIN but not the corresponding option period and vice versa?

DLA Energy Response: Please refer to Amendment 0001 which replaced the 6-month base and 6-month option periods with a 12-month delivery period.

27. Please confirm that Renewable Portfolio Standard costs are to be included in the fixed offer price in the base period.

DLA Energy Response: RPS is to be included in the offered price for all CLINs except CLIN 0033, located in Illinois, where the RPS requirement is covered by the UDC. Please see B1.08(e) and B802. Please see response to Question 26, regarding the period of performance.

28. In the 6 month option period, are Public Service Commission fees allowed to be passed through?

DLA Energy Response: Please see response to Question 26, regarding the period of performance. Public Service Commission Fees are not identified as a cost to be excluded from the price either in B1.08, Paragraph (e), or in B802, Paragraph (c); and shall be included in the price for all CLINs.

29. When is the deadline for DLA to provide notice that they are exercising the option period? If the option period is exercised, is DLA committing to the entire 6 month option period?

DLA Energy Response: Please see response to Question 26, regarding the period of performance.

30. How will DLA seek to confirm /validate pass through charges for the option period that are described in section (2) (i) on page 8.

DLA Energy Response: Please see response to Question 26, regarding the period of performance.

31. Regarding CLIN 0021 – MPO: Is the 9.2% increase in load anticipated to effect all accounts in CLIN 0021? Also, please confirm if the 891,925,181 kWh total given is the annual estimate after the load increase.

DLA Energy Response: The increase estimated of usage is based on the culmination usage for all accounts in CLIN 0021. Please refer to Amendment 0002 which removes all references to the 891,925,181 kWh quantity. The historical number given in B1.08(c) Table 1 is the estimated usage without increase based on data from the previous year.

32. It is implied that RMR should be included in CLINs 0001, 0024, 0027, 0034 and 0035. For these CLINs, can changes to RMR charges be treated as pass throughs under the change in law provision?

DLA Energy Response: As defined in B1.08, Paragraph (e), all charges must be included in the offered price for CLINs 0001, 0024, 0027, 0034 and 0035, except sales tax, property tax, or New Jersey Sales and Use Tax. There will not be an allowance for changes to the offered price unless the change meets the criteria in I820.

33. CLIN 0015 - what is the expected impact on the load and PLC tags from the 600kW Demand Response program enrollment?

DLA Energy Response: There is no expected impact at this time. Based on the current requirements of the PJM Emergency Load Response Program (ELRP), the program is tested twice per year, reducing the load by 600kW for 1 hour. In the event of a real emergency, the load would be reduced for the duration of the event; subject to PJM ELRP requirements and limitations.

34. CLIN 0015 - when did participation Demand Response begin and does the data reflect its impact?

DLA Energy Response: CLIN 0015 has been enrolled in Demand Response for several years and the impact of previous participation has been included in the estimate.

35. CLIN 0021 – is the 9.2% increase relative to the total annual 2023 load? Is there seasonality, a shape or a gradual increase to the total increase, or should the supplier assume a monthly average increase that can be applied to all months?

DLA Energy Response: The estimate is based on annual consumption.

36. CLIN 0026 – please confirm that the solar projects have both been active and any changes to the load are currently reflected in the load data.

DLA Energy Response: Please see response to Question 22, regarding the period of performance.

37. As noted on Page 6, under Firm Fixed Price (ii), Please confirm for CLINS 0002 through 0023, 0025, 0026 and 0029 through 0032 that capacity should be passed through at Contractors cost.

DLA Energy Response: Correct, as referenced in B1.08, Subparagraph (e), Note 1, “The cost to secure capacity to comply with PJM capacity requirements shall be passed through to the Government.” for the Firm Fixed-Price CLINs 0002 through 0023, 0025, 0026, and 0029 through 0032.

38. On page 8, under B802 Locational Marginal Price (Electricity) (DLA Energy) (Jan2009) under b) TRANSACTION FEE, it states that the “Transaction Fee shall compensate the Contractor for all services performed and all costs incurred to supply electricity to the point of delivery whose recovery is not explicitly provided for by the separate Energy and Other Market Charges components described in subsections (a) and (c) of this section.” There is a also a note that says “for items addressed in both B802 and Attachment V that Attachment V shall take precedence.” Can you confirm that for CLIN 0033, Argonne, the pass through components are PJM transmission costs (NITS), Capacity, ComEd Transmission and Distribution Line Losses, and Reliability Must Run. All other costs (including TEC, ancillaries, marginal losses overcollection credit, ARRs etc) should be included in the transaction fee according to the Attachment V.

DLA Energy Response: Please refer to B802, Subparagraph (c)(2) as revised by Amendment 0002 which further clarifies the Other Market Charges applicable to CLIN 0033.

39. On Page 9 (a), regarding converting a LMP based contract to a firm fixed price, would DLA be looking to convert 100% of the remaining volumes in any given month or remaining term to a fixed price or would they be looking to lock in only a percentage of the volume for future terms?

DLA Energy Response: No specific quantities have been defined or are anticipated at this time. The term and quantities to be converted in accordance with B806 would be identified in the conversion proposal for which conversion is proposed and must be mutually agreed upon by both the Government and Contractor.

40. In reference to the Dedicated Facilities Project that is referenced in Note 5, can DLA please provide a list of the accounts that are impacted by the Dedicated Facilities Project and associated account numbers that would receive the line item charge?

41. On the top of Page 13, there is reference to obtaining an External Certificate Authority/Interim External Certificate Authority (ECA/IECA) PKI certificate. Is there a deadline of when this certificate is due? Is it prior to DLA contract award? In addition, the link https://mpa.ec.ncsc.mil/ is invalid.

DLA Energy Response: This would need to be obtained prior to submitting the first invoice. This certificate is an Information Technology certificate to access the website for invoicing.

42. If DLA terminates an account by meter closure, removal of meter or sale of the building, what is the notification process from DLA to Contractor? Can a Contractor charge a termination fee to recover the termination value? Is supplier cost recovery in these situations covered by FAR.212- 4 (l)

“TERMINATION FOR THE GOVERNMENT’S CONVENIENCE”?

DLA Energy Response: In the event the Government terminates an account for convenience, it will be handled in accordance with FAR 52.212-4 (Tailored), Paragraph (l) of the Solicitation. The Government will notify the supplier of any termination, as soon as practicable.

43. On page 14, notification of Tariff Rate Changes (Electricity) (DLA Energy FEB 2013), it is noted that the Contractor shall use commercially reasonable efforts within a commercially acceptable time frame.

What is the expectation from DLA on commercially reasonable in this section?

DLA Energy Response: The Government has no specific timeline for notification and expects the Contractor notify the Government as soon as possible.

44. Under I820 Electricity Regulatory Charges (DLA Energy December 2014) on page 14, it is stated that a Contractor will provide such evidence as the Government may require in support of a request for adjustment resulting from any after imposed (ISO/RTO/PUC) charge. What type of evidence is DLA going to require?

DLA Energy Response: Examples of information the Government may require include, but are not limited to PUC, RTO, State, or Federal rulings with date of effectiveness, ruling number, and any other information to confirm applicability and value of the charge.

45. Will DLA provide a list of accounts that are tax exempt along with the tax exempt certificates prior to award?

DLA Energy Response: Tax exempt certificates will be made available after award.

46. Under page 24, under FAR 52.232-18 Availability of Funds (APR 1984) it states that funds are not presently available for this contract. Does DLA have an estimated date when the fund will be available?

DLA Energy Response: This language in FAR 52.232-18 is standard for all Government contracts crossing fiscal years. The availability of funds clause ensures that in the event of a lapse in funding, supply will still continue and payment will be made once funds are available.

47. Can DLA provide more detail on the award process and signing of contracts?

DLA Energy Response: The Government’s acceptance of an offer will be made in accordance with FAR 52.212-2, Paragraph (c) via a written Notice of Intent to Award. The final contract document, signed by the Contracting Officer, will follow but may be delayed by several days as needed to meet mandatory congressional notification or other regulatory requirements.

48. Under page 29, under (c), A written notice of award or acceptance of an offer, shall result in a binding contract without further action by either party. How will DLA notify the Contractor if other than a written notice?

DLA Energy Response: The Government will provide written acceptance of an offer by providing a Notice of Intent to Award via e-mail.

49. Table 1 shows the estimated usage for CLIN 21 (MPO) to be 622,619,259 KWhs. Note 2 on page 7 says that the expected usage of CLIN 21 is 891,925,181 KWhs. This is a 43% increase – much larger than the 9.8% increase indicated on Note 2. What is driving the significant expected increase in load for

CLIN 21?

DLA Energy Response: Please reference response to Question 31.

50. Is there any kind of price adjustment mechanism should the government’s actual usage deviate materially from the estimated quantities shown in Table 1?

DLA Energy Response: This is a requirements type contract. Please refer to FAR 52.216-21.

51. Attachment V indicates that the new computer associated with CLIN 33 (Argonne) in expected to come on-line in January 2025. Is this schedule still accurate?

DLA Energy Response: This is the best expectation for the computer’s activation and usage.

52. Regarding section B1.08 Table 1, it is stated that the invoice and billing requirement “Requires separate pricing for On Peak and Off Peak” for Clin 033 which is LMP pricing. Typically, IX pricing is at the interval level and not broken out into on/off peak. Would it be DLA’s expectation that the Contractor will assign the interval data on/off peak designation per hour and the associated charges per on/off peak?